AI-induced recession fears rattle Wall Street
A new report from Citrini Research, "The 2028 Global Intelligence Crisis," has Wall Street on edge.
It imagines AI causing white-collar unemployment to spike over 10% and posits that the S&P 500 could drop by 38% from a recent peak.
That's got investors worried about a possible recession and which industries might get hit the hardest.
The report details a grim cycle
The report lays out a tough cycle: as companies use more AI, jobs disappear, people spend less, and profits shrink—so businesses double down on AI to cut costs even more.
It's a loop that could keep hurting both workers and the economy.
Stocks already feeling the AI pinch
Stocks in companies like DoorDash, ServiceNow, and Salesforce have already taken hits (down up to 7% after the report; ServiceNow slid after the report).
Investors are nervous that AI will shake up business models built on easy transactions and put pressure on software prices.
Even big names like Visa and Mastercard aren't immune if AI keeps changing how we pay.
The report's impact on investor sentiment
The report added fuel to market jitters. Investors are feeling even more uncertain about where the whole AI wave is actually headed.