Remember when we thought AI was going to make us all rich? Well, plot twist: it’s currently making everyone panic-sell instead. The stock market is having what can only be described as an AI-induced existential crisis, and honestly, it’s kind of wild to watch.
It all started with software stocks getting absolutely demolished last week. We’re talking about a $2 trillion market cap vanishing act – the biggest non-recession beatdown the sector has seen in 30 years. The trigger? Anthropic dropped some new Claude plugins that basically made investors realize, “Oh wait, AI might actually replace… everything?”
But here’s where it gets really entertaining. The panic didn’t just stay in software land. Oh no, it spread like that one friend’s bad mood at brunch.
The Domino Effect Gets Weird
First, wealth managers and insurance brokers started sweating. Makes sense, right? If AI can do tax planning “within minutes” (thanks, Altruist), why do we need human financial advisors? LPL Financial dropped 14%, Charles Schwab fell 9%, and suddenly everyone’s questioning whether their broker is about to be replaced by a chatbot.
Then real estate got hit. CBRE tanked 19%, Jones Lang LaSalle dropped 17%. Apparently, investors are now worried AI might disrupt… showing people apartments? Look, I get that AI is powerful, but I’m pretty sure it can’t yet smell that weird odor in the basement or notice the neighbor’s aggressive dog.
The Karaoke Machine Plot Twist
But wait, it gets better. Thursday brought us the most random AI panic yet: trucking stocks got crushed because of… a former karaoke machine company. I’m not making this up.
Algorhythm Holdings (yes, that’s how they spell it) used to make those machines that let your uncle butcher “Sweet Caroline” at family gatherings. Now they’re apparently in the AI logistics game, and their white paper about freight optimization sent trucking stocks into a tailspin. RXO dropped 24%, CH Robinson fell 15%.
Meanwhile, Algorhythm’s stock shot up 30%, going from penny stock to… slightly less penny stock at $1.25. The market is basically saying, “We don’t trust established logistics companies, but this karaoke-machine-turned-AI-startup? That’s our bet.”
The Reality Check
Here’s the thing: AI is definitely going to change how business works. But the market is currently treating every AI announcement like it’s the business apocalypse. A tax planning tool doesn’t mean financial advisors are extinct. A logistics algorithm doesn’t mean truckers are obsolete tomorrow.
The tech-heavy Nasdaq is down about 1% for the week, which isn’t exactly crash territory, but the sector rotation is real. Money is fleeing anything that might be “disruptable” and… well, apparently that’s everything now.
So buckle up, because if a karaoke company can tank an entire transportation sector, we’re probably in for more surprises. At least the market’s keeping things interesting – even if your portfolio isn’t loving the entertainment value.