A recent report from Citrini Research, titled 'The 2028 Global Intelligence Crisis,' has sparked significant concern on Wall Street, predicting a future where AI automation leads to widespread job losses. This hypothetical scenario suggests US unemployment could reach 10.2% by June 2028, primarily impacting white-collar positions, software, and delivery jobs. The initial market reaction saw enterprise software stocks fall, with the S&P 500 software and services index dropping significantly. Companies like Uber, Mastercard, and American Express experienced declines, and IBM's stock tumbled 13%, marking its worst day since October 2000.
However, US and European stock markets showed signs of recovery on Tuesday, as investors began to weigh AI's impact alongside other factors like tariffs. A notable development was Advanced Micro Devices (AMD) announcing a significant chip purchase agreement, which included a deal with Meta. This news helped AMD shares surge over 8%, contributing to gains in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite.
Beyond market fluctuations, AI continues to demonstrate clear returns in specific sectors. A new survey by NVIDIA reveals that 70% of healthcare organizations are actively using AI, with 69% employing generative AI and large language models. Executives report substantial benefits, with 85% seeing increased revenue and 80% experiencing reduced costs across areas like logistics, administration, medical imaging, and drug discovery.
Meanwhile, China's onshore stocks rose, buoyed by expectations of lower US tariffs and domestic AI advancements. The government's focus on AI and the anticipated launch of the DeepSeek model are reigniting interest in the tech sector. Zhipu AI, a leading Chinese AI firm, saw its shares rebound over 20% on Tuesday, despite previous concerns about computing resource shortages affecting performance.
Despite some market recovery, investors remain cautious about AI's disruptive potential. The Citrini report highlighted risks to sectors like credit card and food delivery firms. New AI features, such as Anthropic's Claude Code and Claude Code Security, are seen as potential threats to existing business functions. This broader 'AI scare trade' also impacted risk markets, causing major cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP to fall.
Key Takeaways
- Citrini Research's 'The 2028 Global Intelligence Crisis' report predicts 10.2% US unemployment by June 2028 due to AI automation.
- The report caused significant market drops, with the S&P 500 software and services index falling and IBM stock tumbling 13%.
- Companies like Uber, Mastercard, and American Express saw shares fall due to fears of AI replacing jobs in delivery, software, and financial services.
- US and European stock markets rebounded on Tuesday, partly due to easing AI disruption fears and other factors.
- AMD shares surged over 8% following a significant chip purchase agreement, including a deal with Meta.
- NVIDIA's survey indicates 70% of healthcare organizations use AI, with 85% reporting increased revenue and 80% reduced costs.
- China's onshore stocks rose amid AI optimism, government focus on AI, and the anticipated launch of the DeepSeek model.
- Zhipu AI shares rebounded over 20% despite earlier performance degradation concerns due to a shortage of computing resources.
- Anthropic's AI, including Claude Code and Claude Code Security, raises concerns about disruption to existing enterprise software functions.
- Major cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP experienced declines due to a broader 'AI scare trade' impacting risk markets.
AI fears cause stock market drop, Uber and Mastercard shares fall
A new report from Citrini Research warns that AI could cause massive job losses and economic disruption by June 2028. The report suggests AI agents will take over many jobs, leading to over 10% unemployment in the US. This has caused stocks like Uber, Mastercard, and American Express to fall. Analysts say the report is a wake-up call about how quickly AI can change the economy. The scenario predicts AI agents will handle tasks currently done by software companies and middlemen, causing a downward spiral in the economy.
AI thought experiment sparks stock market fears
An AI scenario from Citrini Research, titled 'The 2028 Global Intelligence Crisis,' is causing worry on Wall Street. The report imagines a future where AI leads to 10.2% US unemployment by June 2028 due to white-collar job losses. It predicts a negative feedback loop where AI improvements lead to fewer jobs, less spending, and more AI investment. This hypothetical scenario has caused software stocks and companies like Mastercard and American Express to decline. Experts caution that while it's a scenario, not a prediction, it highlights potential risks of AI.
Dystopian AI outlooks make investors nervous
A viral report from Citrini Research imagining a future with mass AI-driven unemployment is making investors nervous. The report predicts a 2028 scenario where unemployment hits 10.2% due to AI replacing software and delivery jobs, potentially causing financial system shocks. This has led to a significant drop in the S&P 500 software and services index. While some experts believe AI will augment jobs, others see AI's disruptive power as potentially greater than the COVID-19 crisis. The market is seeing a rotation out of AI-exposed companies into more stable sectors.
Stocks rebound as traders weigh AI impact and tariffs
European and US stocks recovered on Tuesday after investors reacted to concerns about AI and new US tariffs. Major indices had fallen on Monday due to a combination of tariffs, AI displacement fears, and private credit worries. The market sentiment shifted partly due to chip maker AMD announcing a deal with Meta. However, investors remain cautious about AI's potential impact on jobs and corporate profits. A report by Citrini Research highlighted potential risks to sectors like credit card and food delivery firms from AI tools. Anthropic's AI also raised concerns for IBM's older systems.
China stocks rise on tariff relief and AI optimism
China's onshore stocks increased as traders returned from the Lunar New Year break, boosted by expectations of lower US tariffs and advancements in domestic technology. Investors welcomed the US Supreme Court's ruling on tariffs and positive signals about AI progress shown during the 2026 Spring Festival Gala. Despite mixed holiday spending data, the government's focus on AI and the anticipated launch of the DeepSeek model are expected to reignite interest in China's tech sector. The onshore yuan also strengthened against the dollar.
Enterprise software stocks drop on AI disruption fears
Enterprise software stocks fell on Monday following a report titled 'The 2028 Global Intelligence Crisis' by Citrini Research. This report outlines a hypothetical scenario from 2026 to 2028 where AI automation could lead to job cuts and reduced software license revenue. Increased unemployment might also harm the consumer economy and company earnings. New AI features like Claude Code and Claude Code Security are seen as threats to existing business functions and competitiveness.
AI delivers clear return on investment in healthcare
A new survey by NVIDIA shows that Artificial Intelligence is significantly improving healthcare, from radiology to drug discovery. Currently, 70% of healthcare organizations are actively using AI, with 69% utilizing generative AI and large language models. AI is helping to increase revenue and reduce costs, with 85% of executives reporting increased revenue and 80% seeing reduced costs. Key areas seeing AI adoption include logistics, administrative tasks, medical imaging, and drug discovery. The report highlights that AI is moving from experimentation to execution, delivering a clear return on investment.
Stocks rise as AI disruption fears ease; AMD surges
US stock markets rose on Tuesday as investor concerns about artificial intelligence eased. Shares of Advanced Micro Devices (AMD) surged over 8% after a significant chip purchase agreement. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw gains. This recovery follows recent market declines driven by fears of AI's disruptive impact on jobs and industries. Market participants are assessing the fallout from AI advances alongside other factors like tariffs.
Crypto prices fall as AI fears impact risk markets
Major cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP have fallen significantly over the past week due to a broader 'AI scare trade' affecting risk markets. Bitcoin remains stuck in a trading range between $60,000 and $70,000, with altcoins underperforming. Analysts warn that Bitcoin's failure to break above its current range suggests a bearish technical outlook. The sell-side pressure on altcoins is at five-year highs, indicating holders are distributing assets in a market with scarce buyers. This macro uncertainty is weighing on crypto prices.
Zhipu AI shares rebound despite compute shortage concerns
Shares of Zhipu AI rebounded sharply on Tuesday, rising over 20%, after experiencing a significant drop in the previous session. The company had sought partners for computing resources to support its AI models, following consumer complaints about performance degradation due to a lack of capacity. Despite these concerns, Zhipu AI shares are trading significantly above their IPO price, driven by strong investor optimism in China's AI sector. Zhipu AI is one of China's leading AI firms, alongside others like MiniMax.
AI-battered stocks like IBM struggle to recover
Stocks like IBM, which have been significantly impacted by fears surrounding artificial intelligence, are struggling to rebound. IBM's stock experienced its worst day since October 2000, tumbling 13% on Monday. Other companies affected by AI disruption concerns are also facing difficulties in recovering their value. The market is closely watching how these AI-impacted companies will perform as investor sentiment shifts and new AI technologies continue to emerge.
Sources
- ‘A feedback loop with no brake’: how an AI doomsday report has rattled markets
- An AI Thought Experiment on Substack Is Sending The Stock Market Spiraling
- Skittish investors spooked as dystopian AI outlooks go viral
- Stocks bounce as traders assess AI fallout, tariffs
- China Stocks May See Resilient Reopen on Tariff Relief, AI Buzz
- Enterprise software stocks tumble while broader market sees red
- From Radiology to Drug Discovery, Survey Reveals AI Is Delivering Clear Return on Investment in Healthcare
- Stock Market Today: Dow up over 400 points, S&P 500 and Nasdaq advance as AI-disruption fears ease; AMD’s stock surges
- BTC, ETH, SOL, XRP extend losses as AI scare trade unsettles risk markets
- Zhipu AI shares rebound after tumbling on compute shortage concerns
- IBM, CrowdStrike, Other AI-Battered Stocks Struggle to Rebound. It’s a Long Road Back.
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