US software and private capital shares hit with fresh wave of selling
Financial Times
February 23, 2026
AI-Generated Deep Dive Summary
A fresh wave of selling has hit US software companies and private capital shares, with Wall Street banks also experiencing declines amid growing fears over the potential disruption caused by artificial intelligence (AI). The sell-off reflects investor concerns about the long-term impact of AI on job markets and business models, particularly in sectors like technology and finance. Major tech firms such as Microsoft and Salesforce have seen significant drops in their stock prices, while private equity giants like KKR and Blackstone face pressure as investors reassess the value of their assets in light of AI-related risks.
The sell-off has been fueled by fears that AI could automate jobs, reduce labor costs, and disrupt traditional business operations across industries. This sentiment has led to a broader sell-off in financial markets, with tech stocks and bank shares taking a hit. Analysts warn that the uncertainty surrounding AI’s impact on employment and economic growth is creating volatility in the stock market. The decline in Wall Street banks also points to concerns about their exposure to AI-driven risks, such as cybersecurity threats and regulatory challenges.
The situation underscores the growing importance of understanding AI’s potential consequences for investors and businesses alike. As AI continues to evolve, its impact on employment and economic structures could become even more pronounced, leading to further market fluctuations. Investors are now closely monitoring how companies adapt to these changes and whether they can mitigate risks while capitalizing on AI’s opportunities.
This development matters because it highlights the shifting dynamics of the global economy and the challenges businesses face in navigating the AI revolution. For investors, this means reevaluating portfolio strategies and considering the long-term implications of AI-driven disruption. The sell-off also serves as a reminder of the importance of staying informed about emerging technologies and their potential to reshape industries. As AI continues to evolve, its impact on markets and employment will remain a critical factor for businesses and investors to track closely.
Verticals
businessfinance
Originally published on Financial Times on 2/23/2026