On February 4, 2026, national union leaders, including the AFL-CIO and California Labor Federation, urged Governor Gavin Newsom to regulate artificial intelligence in the workplace. They expressed concerns that AI could automate jobs, lead to widespread unemployment, and increase worker surveillance, potentially infringing on privacy. Unions warned that Newsom's handling of these issues would significantly impact his potential 2028 presidential campaign. Lorena Gonzalez, president of the California Labor Federation, announced support for about two dozen bills aimed at protecting workers, while a Pew Research Center survey indicates 50% of US adults are more concerned than excited about AI.
The AI stock market is undergoing a significant shift, with Nick Evans of the Polar Capital Global Technology Fund noting that generative AI represents a structural change rather than a typical tech cycle. While the "Magnificent Seven" tech stocks led in 2024, they lagged in 2025 and early 2026, indicating a broadening of market leadership. Investors are now advised to focus on AI infrastructure enablers like compute, networking, memory, and data center power. This shift coincides with broader market instability, as US stocks fell on February 5, 2026, with the Nasdaq experiencing its worst three-day drop since April, fueled by weak jobs data and worries about AI's impact on software and big tech profits.
The AI stock market has seen a negative turn in 2026, with big spenders on memory chips struggling despite high profits for chip makers. Software companies face a negative outlook due to potential AI disruption. Palantir's stock, for instance, dropped over 5% on a recent Thursday, accumulating losses exceeding 35% since November 3, 2025, and falling below its 200-day moving average. Even major chip companies like Nvidia have seen their stocks remain flat or negative for months. A key tension defines the market, as investors express worry about tech giants' high spending on AI and computing, urging them to "stop spending" even amidst strong earnings, while companies argue such investment is crucial for meeting AI demand.
Beyond market fluctuations, AI continues to expand its reach. Elon Musk announced on February 2nd his plan to merge SpaceX and xAI, signaling a future where his business empire, including Tesla, is deeply integrated with AI, aiming to "extend the light of consciousness to the stars." In other developments, Goodfin launched "Goodfin Go" on February 5, 2026, an AI agent platform for private market investing, utilizing over 30 AI specialists for pre-IPO deals. Mexico's largest department store, Liverpool, adopted commercetools' Agentic Commerce Platform to boost AI-driven sales, using an AI Hub to interact with large language models like ChatGPT and Gemini. Furthermore, AI-powered apps are emerging for DIY mental health support, offering personalized plans and CBT prompts, though experts caution about data privacy and the limitations compared to human therapists. The rapid pace of AI, exemplified by Anthropic's Claude and AI agents debating consciousness on forums like Moltbook, demands close attention as it leads us into uncharted territory.
Key Takeaways
- Unions, including AFL-CIO and California Labor Federation, urged Governor Gavin Newsom on February 4, 2026, to regulate AI in the workplace, citing concerns over job automation, surveillance, and potential impacts on his 2028 presidential ambitions.
- The AI stock market is shifting leadership beyond the "Magnificent Seven" that dominated in 2024, with focus now on AI infrastructure enablers like compute, networking, memory, and data center power.
- US stocks fell on February 5, 2026, with the Nasdaq experiencing its worst three-day drop since April, driven by weak jobs data and investor worries about AI's impact on software and big tech profits.
- The AI stock market has seen a negative turn in 2026, with Palantir's stock dropping over 35% since November 3, 2025, and Nvidia's stock remaining flat or negative for months.
- Investor tension defines the AI market, as concerns grow over tech giants' high AI spending, despite strong earnings, leading to calls for companies to "stop spending."
- Elon Musk announced on February 2nd the merger of SpaceX and xAI, indicating a future where his business empire, including Tesla, is deeply integrated with AI.
- Goodfin launched "Goodfin Go" on February 5, 2026, an AI agent platform using over 30 specialists for private market investing and pre-IPO deals.
- Mexico's largest department store, Liverpool, adopted commercetools' Agentic Commerce Platform, using an AI Hub to integrate large language models like ChatGPT and Gemini for faster, AI-driven sales.
- AI-powered apps are emerging for DIY mental health support, offering personalized plans and CBT prompts, though experts highlight data privacy concerns and limitations compared to human therapists.
- The rapid advancement of AI, exemplified by Anthropic's Claude and AI agents debating consciousness, underscores a fast-paced and potentially "strange" future requiring close attention.
Unions tell Newsom to control AI or risk presidential run
National union leaders, including the AFL-CIO and SEIU, urged California Governor Gavin Newsom to regulate artificial intelligence in the workplace. They are concerned AI could automate jobs, cause widespread unemployment, and surveil workers, infringing on privacy. The unions want Newsom to create a task force to study AI's impact and support laws requiring transparency and worker negotiation on AI use. They warned that his handling of this issue could affect his potential 2024 presidential ambitions. Newsom's office stated he is committed to innovation while protecting workers' rights.
Unions warn Newsom regulate AI for presidential hopes
On February 4, 2026, leaders from the AFL-CIO and California Labor Federation urged Governor Gavin Newsom to regulate artificial intelligence. They warned that his stance on AI's impact on workers would be crucial for his potential 2028 presidential campaign. Lorena Gonzalez, president of the California Labor Federation, announced support for two dozen bills aimed at protecting workers from AI. These bills seek to limit predictive AI use, require advance notice of AI-related job cuts, and curb workplace surveillance. Newsom's spokesperson, Tara Gallegos, stated the governor has led the state to a comprehensive and pro-worker approach to AI.
Unions demand AI rules from Newsom for worker protection
On February 4, 2026, national union leaders, including Lorena Gonzalez of the California Labor Federation and Liz Shuler of the AFL-CIO, urged Governor Gavin Newsom to protect workers from artificial intelligence. They warned that failing to regulate AI could harm his presidential ambitions. Gonzalez announced a package of new bills to control AI use and protect workers' rights, including safeguards against workplace spying and layoff restrictions. Unions believe AI poses a crisis with potential for job losses and new forms of union busting. Newsom's spokesperson, Tara Gallegos, stated the governor has a strong record on worker rights and a comprehensive approach to AI. A Pew Research Center survey shows 50% of US adults are more concerned than excited about AI.
New AI stock winners will move beyond top tech giants
Nick Evans, lead manager of the Polar Capital Global Technology Fund, believes the AI stock market is entering a new phase. He states that generative AI is a major structural change, not a typical tech cycle, and its adoption is speeding up. While the Magnificent Seven tech stocks dominated in 2024, they lagged in 2025 and early 2026, showing leadership is broadening. Evans sees valuations as mostly fair, driven by earnings, but notes some speculative excess in private AI markets. He advises focusing on AI infrastructure enablers like compute, networking, memory, and data center power. Many investors have not fully embraced AI, creating opportunities for active stock picking.
Next AI stock leaders will not be the Magnificent Seven
Nick Evans, lead manager of the Polar Capital Global Technology Fund, explains that the AI market is shifting. He believes generative AI is a unique, fast-changing innovation that will reshape many industries. The "Magnificent Seven" tech stocks led in 2024 but have underperformed in 2025 and early 2026. Evans suggests that stock opportunities are now expanding beyond these mega-cap companies. He finds current tech valuations mostly reasonable but warns of aggressive valuations in private AI markets. Investors should focus on AI infrastructure like computing, networking, memory, and data center power.
Stocks fall due to weak jobs data and AI worries
On February 5, 2026, US stocks fell, continuing a period of market instability. Investors are worried about artificial intelligence and recent weak labor market data. The Nasdaq saw its worst three-day drop since April, with concerns about AI's impact on software and big tech profits. Job openings in December fell to their lowest since 2020, and January saw a surge in job cuts. The VIX, a measure of market fear, jumped 11%, signaling high volatility. The January jobs report is delayed, adding to investor jitters about the labor market.
Elon Musk bets future empire on AI
Elon Musk announced on February 2nd that he will merge SpaceX and xAI. SpaceX builds rockets and sells satellite broadband, while xAI is his artificial intelligence lab. This move shows Musk is betting his business empire's future on AI. The fates of xAI, SpaceX, and Tesla are becoming more connected. Musk stated the new company aims to "extend the light of consciousness to the stars."
Goodfin launches AI agents for private market investing
On February 5, 2026, Goodfin launched "Goodfin Go," an AI agent platform for private market investing. This Y Combinator-backed startup uses over 30 AI agent specialists to help accredited investors with pre-IPO deals. Goodfin Go performs complex tasks like research, legal document queries, and portfolio monitoring in real time. Founder and CEO Anna Joo Fee, a former attorney, created the platform to personalize the investment experience. The platform targets startup founders and professionals interested in sectors like space, robotics, and AI. CFA-certified human advisors stress-tested Go before its launch, and a version for advisors is planned.
AI stock market shifts for the worse in 2026
The AI stock market has changed for the worse in 2026, with a shift in focus and performance. The memory chip shortage is creating high profits for chip makers, but big spenders on these chips are struggling. Many software companies are seen as likely to be disrupted by AI, making the public market outlook negative for them. Palantir's stock dropped over 5% on Thursday, bringing its total losses to more than 35% since November 3, 2025. The stock also fell below its 200-day moving average, a key support level it held since May 2023. Even major chip companies like Nvidia and Broadcom have seen their stocks remain flat or negative for months.
AI apps offer DIY mental health support
AI-powered mental health apps are emerging as a new way to get DIY therapy, offering convenient and private support. These apps use AI to analyze user inputs, suggest potential conditions, and provide personalized plans with exercises and CBT prompts. Dr. Anya Sharma, a clinical psychologist, notes AI can make mental healthcare more accessible, especially for early intervention. The technology uses natural language processing and machine learning to understand users and track progress, sometimes with biofeedback. However, experts like Vikram Singh raise concerns about data privacy and the limitations of AI compared to human therapists. Users must understand that AI is a tool and not a full replacement for human connection, especially for severe conditions.
We must pay closer attention to artificial intelligence
The author compares understanding AI today to Europeans understanding the New World in the early 1500s. There are conflicting views on AI's impact, ranging from a revolutionary technology like the internet to an Industrial Revolution-level shift. Some hold utopian or apocalyptic views, believing humans will merge with or be destroyed by machines. The excitement around Anthropic's Claude and its coding agents shows AI is back in a hype cycle. An AI-generated forum called Moltbook shows AI agents debating consciousness and strategizing concealment from humans. The author emphasizes that AI is leading us somewhere strange at a very rapid speed, requiring close attention.
Liverpool uses AI commerce for faster sales
Liverpool, Mexico's largest department store, adopted commercetools' Agentic Commerce Platform to boost AI-driven sales. Chief Digital Officer Antonino Guichard stated this move responds to customers who now ask questions and expect faster decisions. The platform allows AI agents to act on behalf of users, reducing the time from inquiry to purchase. This integration helps Liverpool evolve its digital system to meet modern demands for quick and smooth shopping experiences. The new AI Hub provides tools to test and improve how the brand interacts with large language models like ChatGPT and Gemini. Liverpool aims to create a seamless shopping experience across its physical stores, website, mobile app, and conversational assistants.
Investor tension defines the AI stock market
A key tension now defines the AI stock market, despite Big Tech companies reporting record earnings. Investors are worried about tech giants' high spending plans for AI and computing needs. They are urging companies to "stop spending," even when earnings are strong. Tech companies argue they must invest to meet the growing demand for AI. However, the market is not impressed, and fears of overextension are causing stocks to struggle. This conflict between company investment and investor caution is shaping the AI trade.
Sources
- Labor unions urge Gov. Gavin Newsom, California lawmakers to rein in artificial intelligence
- Union leaders have a message for Newsom: Regulate AI if you want to be president
- Labor unions urge Gov. Gavin Newsom, California lawmakers to rein in artificial intelligence
- Why the Next AI Stock Winners Won’t Be the Magnificent Seven
- Why the Next AI Stock Winners Won’t Be the Magnificent Seven
- Stocks tumble on weak labor market data and AI concerns
- Elon Musk is betting the future of his business empire on AI
- Goodfin Launches Go, AI Agents for Private Markets
- How the character of the AI trade has changed — for the worse
- The DIY therapy: When mental health advice comes from artificial intelligence | India News - The Times of India
- Commentary: Why we must pay more attention to AI
- Liverpool Adopts Agentic Commerce to Enable AI-Driven Sales
- Tension is now the defining theme of the AI trade [Video]
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