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AI Fuels Market Fears: Stocks Tumble
24 Feb
Summary
- A hypothetical report sparked widespread AI stock declines.
- Concerns about AI leading to white-collar job losses emerged.
- Uncertainty about trade policy also weighed on markets.
Stocks experienced tumultuous trading as a detailed hypothetical report from Citrini Research introduced new fears surrounding artificial intelligence. The report, dated June 2028, suggested that AI could lead to a "global intelligence crisis" by automating white-collar jobs, potentially causing mass unemployment and financial instability. This scenario caused significant stock declines, with companies like DataDog, CrowdStrike, Zscaler, IBM, American Express, KKR, and Blackstone experiencing notable drops.
The market's sensitivity to AI disruption was evident, as demonstrated by previous sharp movements in transport stocks following AI-related announcements. This renewed anxiety, coupled with trade policy uncertainties stemming from President Trump's proposed tariff increases, further pressured major stock indexes. The Dow Jones Industrial Average fell significantly, as did the S&P 500 and Nasdaq composite.
Investors sought safer assets, leading to a rally in bonds, with the 10-year Treasury yield dropping. Precious metals also saw gains. While some analysts advised against overreacting, trade-sensitive stocks and logistics firms also slumped. The rapid pace of AI development is seen as a key factor driving market volatility and requiring adaptation from companies like DoorDash.
