Barclays Warns AI-Driven Selling Momentum Is Intensifying

Odaily News Barclays Bank stated that the AI-driven market sell-off may persist as investors are adopting a "sell first, think later" approach. Analyst Emmanuel Cau noted that the overall market remains resilient, but concerns over the disruptive impact of artificial intelligence are exacerbating divergences between sectors. Traditional labels such as cyclical stocks and defensive stocks are no longer relevant; nowadays, stocks are categorized based on perceptions of their "AI immunity" or "AI vulnerability." Commodities, industrials, healthcare, and consumer goods sectors are considered relatively less affected by AI. Media, software, financial services, logistics, commercial real estate, and some technology sectors are deemed higher risk, and despite strong earnings momentum in these areas, selling is becoming increasingly indiscriminate. Barclays warned that stress is spreading to the credit markets and putting pressure on the banking sector. In the short term, this trend may be difficult to contain, but long-term opportunities are emerging. (Jin10)