Private credit firms like Blue Owl, Blackstone, and Apollo Global Management also declined|Stephen Hogan|CC BY 2.0
US stocks fell sharply on Monday after investors reacted to a report from Citrini Research that warned that artificial intelligence could disrupt parts of the economy, triggering heavy selling across major sectors.
The report described a 2028 scenario in which AI replaces white-collar jobs, reduces consumer spending, and puts pressure on delivery apps and credit card companies. It clearly said the story was a scenario, not a prediction.
What followed?
The Dow Jones Industrial Average plunged 1.7%, the S&P 500 fell 1%, while the Nasdaq Composite dropped 1.1%.
Technology stocks led the losses. IBM tumbled 13%, marking its worst one-day drop since 2000. Software companies like Datadog, CrowdStrike, and Zscaler each fell more than 9%. DoorDash and American Express lost over 6%.
Private equity firms also declined. Blackstone, KKR, and Apollo slid as investors worried AI disruption could hurt credit markets and profits.
Meanwhile, investors sought safer assets. Gold jumped 2.9%, and silver rose 5.2%.
Concerns deepened after Anthropic said its AI tool can update legacy COBOL systems used on IBM computers. Trade tensions added pressure after President Donald Trump signaled plans to raise a global tariff to 15%.
Analysts advised investors not to panic, but markets remain highly sensitive to AI risks.