Why the ‘AI scare trade’ might not be done

A recent sell-off has swept through various sectors like software, insurance, real estate, and trucking as investors worry about potential disruption from artificial intelligence. Analysts note that AI, which previously fueled market rallies, could now drag down segments of the market. Specific events, such as a new AI insurance app or a tax planning feature, triggered sharp drops in shares for major brokers and wealth management firms. Real estate services also saw significant declines amid concerns that AI could slash demand for office space long-term. Furthermore, an announcement from a small AI/logistics company caused a major slump in transportation stocks. While some analysts believe the sell-offs are overdone and based on speculative fears rather than immediate fundamental changes, others are concerned that the extreme, single-stock moves driven by AI nerves could eventually make the broader market vulnerable.

(Source：CNN)