Markets are churning furiously beneath the surface
The Economist
February 22, 2026
AI-Generated Deep Dive Summary
Markets are experiencing significant underlying volatility as investors grapple with the implications of artificial intelligence (AI) on business models. While the S&P 500 remains near record highs, concerns about AI's impact have sent software and tech stocks tumbling. Investors are reassessing valuations amid fears that AI could disrupt traditional business practices, leading to sharp declines in stock prices—some as much as a third below recent peaks.
The panic is particularly evident in the technology sector, with companies like IBM seeing dramatic drops, such as an 13% slide on February 23rd. These declines reflect broader worries about how AI might reshape industries and alter corporate strategies. The uncertainty has created a ripple effect across financial markets, prompting investors to scrutinize their holdings and question whether they have adequately accounted for the transformative potential of AI.
This shift underscores a fundamental reevaluation of risk and growth prospects in the tech-driven economy. As businesses and investors navigate this new landscape, the focus will likely remain on how companies adapt to AI's challenges and opportunities. For those interested in business trends, understanding these dynamics is crucial, as they highlight the rapidly evolving nature of modern markets and the importance of staying ahead of technological changes.
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Originally published on The Economist on 2/22/2026