{"id":50475,"title":"Billions Wiped Off US Firms as AI Fears Spark Market Selloff","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-02-24T09:12:30+00:00","modified":"2026-02-24T07:18:14+00:00","canonical_url":"https://stockmark.it/billions-wiped-off-us-firms-as-ai-fears-spark-market-selloff/","markdown_url":"https://stockmark.it/billions-wiped-off-us-firms-as-ai-fears-spark-market-selloff.md","json_url":"https://stockmark.it/billions-wiped-off-us-firms-as-ai-fears-spark-market-selloff.json","category":"Artificial intelligence","categories":["Artificial intelligence","Economy","Investment"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/1740496093508_OoQgstoP.jpg?fit=1024%2C576&quality=89&ssl=1","format":"news","language":"en-GB","content":"Billions of dollars were erased from the stock market value of US-listed software and financial companies following a viral scenario published on Substack, which outlined a possible collapse of wage growth driven by artificial intelligence.\n\nCitrini Research, an equity and macro research firm based in New York, presented a bear case for AI and the American economy. The report suggested that by 2028, the wealth of those owning computational resources might surge, while real wage growth could plummet as white-collar workers faced job losses to machines and were relegated to lower-paying positions.\n\nThe article painted a picture of initial technological disruption beginning in software, spreading to e-commerce and payment processors, and eventually affecting various sectors including private credit and insurance. An increase in unemployment might lead to mortgage defaults in areas once considered affluent. The report concluded that while AI exceeded expectations in technology, the broader economy could suffer.\n\nSeveral notable companies experienced significant share price declines as a result of this bearish outlook. Visa and Mastercard fell by 4.6 per cent and 5.8 per cent respectively, while DoorDash saw a drop of 8.4 per cent and Blackstone decreased by 6.2 per cent. IBM, one of the largest computer firms globally, lost 13.2 per cent of its value.\n\nThe tech-heavy Nasdaq index closed down by 258.80 points, or 1.1 per cent, while the Dow Jones Industrial Average fell by 821.91 points, or 1.7 per cent, amid a broader sell-off linked to trade uncertainties. Analysts attributed some of these declines to Citroni’s research, reflecting investor concerns regarding heavy expenditure on AI infrastructure and its implications for the economy.\n\nThe market reaction raised questions about the investors’ understanding of the situation, with some financial analysts suggesting that fears concerning AI-related disruptions were possibly overblown."}