"S&P 500 futures are flat this morning prior to the opening of markets in New York after the index fell 1.57% yesterday as traders fled from stocks exposed to AI. The market is now in negative territory for the year.Tech stocks led the decline yesterday, with the Nasdaq Composite down 2%. The S&P 500's software sector is down 27% since October, according to the Financial Times, which gives you an idea of how worried investors are that AI will simply replace software makers."
"Losses were imposed on non-tech companies too, as investors became paranoid about how much damage AI might inflict upon sectors like trucking, real estate, and finance. Perhaps the wildest example of the rout was Algorhythm Holdings, a small trucking logistics company that also sells karaoke machines. The company said its SemiCab AI platform "helped customers scale freight volumes by 300% to 400% without a corresponding increase in headcount,""
Equity markets fell sharply as investors fled stocks perceived to be exposed to AI, pushing the market into negative territory for the year. Tech led declines with the Nasdaq down and the S&P 500 software sector plunging since October. Gold dipped sharply below $5,000 per troy ounce as traders sought cash over assets. Asian markets declined while U.K. and European markets were flat to up. Losses extended beyond tech into trucking, real estate, and finance after small companies reported AI-driven efficiency gains, triggering steep drops in related indexes and individual stocks. CBRE lost 8.84% yesterday.
Read at Fortune
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