Timeline
February 23, 2026 — February 27, 2026
Business
Timeline: How an AI 'Thought Experiment' Triggered a Week-Long Market Selloff
In late February 2026, a hypothetical scenario about AI-driven job losses published by Citrini Research sparked widespread panic across global markets. What began as a Substack post evolved into a multi-day selloff affecting software, tech, and financial stocks, revealing deep investor anxieties about artificial intelligence's disruptive potential and fundamentally challenging Wall Street's traditional investing strategies.
11 events · 4 days · 14 source articles
Mon, Feb 23, 2026
Major
Citrini Research publishes AI disruption thought experiment
Citrini Research released "The 2028 Global Intelligence Crisis" on Substack, a fictional scenario depicting 10.2% U.S. unemployment by 2028 due to AI-driven white-collar job losses. The thought experiment described a dystopian future with "ghost GDP" where productivity rises but consumer spending collapses as workers are displaced. Though presented as speculative fiction, the report immediately caught Wall Street's attention.
Mon, Feb 23, 2026
Major
Software and payments stocks plunge on AI fears
Delivery, payments, and software stocks experienced sharp declines as investors reacted to the Citrini report's warnings about AI risks to various economic sectors. Wall Street banks also slid as fears over AI disruption mounted across the market. The selloff marked the beginning of what would become a week-long market downturn driven by AI anxiety.
Mon, Feb 23, 2026
Moderate
Global markets brace for contagion as Asian stocks set to fall
The AI-driven selloff spread beyond U.S. markets, with Asian shares positioned to fall as the trading week began in that region. Treasuries and gold rallied as investors sought safe havens, while Bitcoin slumped. The combination of tariff concerns and fresh AI anxiety created a risk-off environment across global markets.
Tue, Feb 24, 2026
Moderate
Citrini report author proposes AI tax to cushion job losses
Alap Shah, co-author of the viral Citrini Research report, called for governments to consider taxing artificial intelligence to mitigate the effects of potential sweeping job losses. The proposal came as the "AI scare trade" gained momentum and markets continued to digest the implications of the thought experiment that had triggered the selloff.
Tue, Feb 24, 2026
Moderate
Software investors remain on edge over AI upheaval
Markets continued to weigh whether incumbent software companies would successfully adapt to the AI revolution or be sidelined by emerging AI agents. The uncertainty reflected deeper questions about the sustainability of existing tech business models and which companies would survive the transition to an AI-dominated landscape.
Thu, Feb 26, 2026
Major
Nvidia's strong results fail to halt tech stock decline
Despite better-than-expected earnings from chipmaker Nvidia Corp., U.S. stocks fell as investor concern about AI's disruptive risk persisted. The Nasdaq dropped 1.2%, demonstrating that even positive fundamental news from a key AI infrastructure provider couldn't overcome the broader market anxiety about artificial intelligence's economic impact.
Thu, Feb 26, 2026
Moderate
Retail traders buy the dip while Wall Street continues selling
A divergence emerged between professional and non-professional investors, with retail traders rushing to buy beaten-down software stocks even as Wall Street continued dumping them over AI disruption fears. This split suggested differing views on whether the selloff represented a buying opportunity or a fundamental reassessment of tech valuations.
Thu, Feb 26, 2026
Minor
Asian markets set to pull back from record levels
Asian stocks looked poised to retreat modestly from record highs after Nvidia's lackluster market reception dulled Wall Street sentiment despite the company's strong financial results. The continued negative mood demonstrated how deeply the AI anxiety had penetrated global investor psychology.
Fri, Feb 27, 2026
Major
Block's massive layoffs intensify AI job displacement fears
Fintech company Block Inc. announced substantial workforce reductions, fanning broader anxiety that artificial intelligence was poised to upend large sections of the economy. The S&P 500 opened lower as risk-off sentiment swept through markets, with Block's cuts providing real-world validation of the hypothetical scenarios outlined in the Citrini report.
Fri, Feb 27, 2026
Major
Tech stocks head for worst month in nearly a year
U.S. tech stocks approached their worst monthly performance in almost a year, driven by AI jitters and compounded by fears about a potential US-Iran conflict that sent oil prices jumping. The convergence of AI anxiety with geopolitical concerns deepened the selloff and heightened market volatility.
Fri, Feb 27, 2026
Major
Wall Street's quantitative investing strategies fundamentally challenged
The week's events upended traditional Wall Street investing playbooks, with analysts recognizing that a Substack thought experiment—rather than earnings misses or Federal Reserve actions—had triggered a major market reordering. The episode revealed that AI psychosis would likely continue affecting markets, as investors grappled with unprecedented uncertainty about technology's economic impact.
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