AI Fear Grips Wall Street as a New Stock Market Reality Sets In

Core Viewpoint - Investors are increasingly anxious about the transformative impact of artificial intelligence (AI) on the economy, leading to significant stock market volatility [1][2]. Group 1: Market Reactions - AI startup Anthropic's release of new automation tools triggered fears of widespread business disruption, resulting in a sell-off across various stocks, including Expedia Group Inc., Salesforce Inc., and London Stock Exchange Group Plc [2]. - Despite a rebound at the end of the week, the market experienced severe losses, with 164 stocks in the software, financial services, and asset management sectors losing a total of $611 billion in market value [5][6]. - Thomson Reuters Corp.'s shares fell 20% in a week, marking their steepest decline ever, while Morningstar Inc. faced its worst week since 2009 [5]. Group 2: Industry Impact - The potential disruption from AI is expected to grow, affecting a wide range of companies across various sectors [4]. - The semiconductor-related stocks index has more than tripled since the end of 2022, indicating a significant shift in investment focus towards companies benefiting from AI advancements [7].