AI-linked fears roil some corners of Wall Street after years of hype and gains
Summary
Concerns over AI spending are causing volatility in Wall Street, as investors question profitability. Major companies like IBM and Mastercard face sharp declines amid fears of economic disruption due to AI advancements.
Why It Matters
This article highlights the shifting sentiment on Wall Street regarding AI investments, illustrating how quickly market perceptions can change. It underscores the tension between technological advancement and economic stability, making it crucial for investors and businesses to navigate these dynamics carefully.
Key Takeaways
- Investor confidence in AI is wavering as spending concerns grow.
- Major companies like IBM and Mastercard are experiencing significant stock declines.
- The article emphasizes the speculative nature of current market reactions to AI developments.
Traders work on the floor of the New York Stock Exchange during morning trading Tuesday.Michael M. Santiago / Getty ImagesShareAdd NBC News to GoogleFeb. 24, 2026, 3:52 PM ESTBy Allie Canal and Jared PerloListen to this article with a free account00:0000:00Stocks surged to records in large part because of hope — and hype — about artificial intelligence. But in recent months, worries about aggressive spending on AI have rippled through Wall Street as investors question whether that spending will materialize into actual profits. And some industries wavered this week as anxieties about the technology intensified, underscoring how quickly sentiment has shifted since the start of the year. Visa, Mastercard and IBM all fell sharply Monday, extending a broader bout of volatility across AI-linked names. Tuesday saw a modest bounce back across the markets as some software stocks also rebounded, thanks to new AI integrations announced by Anthropic. The benchmark S&P 500 index remains roughly flat for the year.Since November, AI-powered coding systems such as Anthropic’s Claude Code and OpenAI’s Codex have surged in capabilities and popularity among software developers. Using these tools, complex software packages and products can now be developed in minutes or days. The most recent sell-off came after a grim and now-viral weekend substack post by Citrini Research warned of an eventual stock market crash, a sharp pullback in consumer spending and widespread white-collar layoffs by 20...
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