The recent panic on Wall Street was triggered by a viral report from Citrini Research titled "The 2028 Global Intelligence Crisis," which outlines a fictional but plausible "AI Doomsday" scenario.

 

The Stock Market Could Crash in an AI Doomsday Scenario, According to Analysts. Wall Street Is Panicking.

The recent panic on Wall Street was triggered by a viral report from Citrini Research titled "The 2028 Global Intelligence Crisis," which outlines a fictional but plausible "AI Doomsday" scenario. This report, published on February 22, 2026, describes a future where autonomous AI agents rapidly displace white-collar workers, leading to mass unemployment (reaching 10%), a sharp drop in consumer spending, and a subsequent 38% plunge in the S&P 500.

On Monday, February 23, 2026, the Dow Jones Industrial Average dropped 1.7% (822 points) as investors reacted to these fears. Software and payment stocks were hit hardest, with IBM falling

 

Key Analyst Insights

Contagion Fears: Analysts are concerned about a "negative feedback loop" where AI-driven layoffs in sectors like software, accounting, and law lead to a broader economic recession.

"DeepSeek-Type Moment": Some analysts, including Dan Ives of Wedbush Securities, argue the panic is overblown, calling it a "DeepSeek-type moment" where investor fear is disconnected from solid business fundamentals. Ives maintains a "historical buying opportunity" exists for oversold stocks like Salesforce.

Capex Fatigue: Wall Street is increasingly wary of massive infrastructure spending. Combined 2026 spending for Microsoft and Alphabet is projected to exceed $380 billion, raising concerns about future cash flows if AI revenue fails to accelerate.

Volatility Surge: The VIX (Fear Gauge) surged 18% to 20.82 on February 13, 2026, signaling a shift from unbridled optimism to a "show me the money" phase for AI investments.

Sector-Specific Impacts

Sector               Key Stocks Impacted            Impact Detail

Software          Salesforce, Datadog, Zscaler          Significant sell-off due to fears of AI "agentic" disruption.

Payments        Mastercard, Visa, American Express         Fears that AI agents will bypass traditional payment "moats".

Real Estate     CBRE, Jones Lang LaSalle  Shares fell over 12% as AI tools threaten to disrupt real estate services.

Defensive Tech           Apple  Viewed as more resilient due to a conservative AI infrastructure profile.