Citrini founder shocked by AI report, triggering a sharp drop in US stocks.

Source: Global Market Report

James van Geelen never imagined he would trigger a stock market crash on Monday. But it was indeed him.

The 33-year-old founder of Citrini Research published a dystopian report on his company's Substack on Sunday, describing the future of artificial intelligence. Titled "The Global Intelligence Crisis of 2028," the article describes a hypothetical scenario where massive layoffs of white-collar workers trigger a deflationary chain reaction, causing unemployment to soar to over 10%, and stocks to plummet.

This 7,000-word article became a hot topic in the market early Monday morning. A sell-off ensued after trading began. The S&P 500 quickly turned negative, closing down more than 1% for the day. Financial stocks experienced their worst day since April. A large software ETF plunged more than 4%. In addition, ServiceNow Inc. and DoorDash Inc. also suffered losses.

Companies named, including American Express, plummeted. Citrini did not short any of these stocks. Van Geelen's phone rang incessantly that day; many potential new clients wanted his company's research or feedback. "If I had anticipated the market's volatility, I wouldn't have offered it for free," said van Geelen, who was meeting with clients in Miami. Previously, multiple sectors, including software, insurance brokerage, wealth management, and cybersecurity, had been sold off due to concerns about artificial intelligence, making investors already wary. On Monday, tariffs and geopolitical news, coupled with the release of the Citrini report and fears about a potential impact on a new tool from AI startup Anthropic, triggered sharp market volatility. Stocks and sectors that suffered heavy losses the first day rebounded on Tuesday along with the broader market. But this day's panic also revealed just how unpredictable the situation on Wall Street has been in recent months, as market sentiment towards artificial intelligence has shifted from enthusiasm for growth to fear of disruptive impact. "The market clearly reacted strongly," said van Geelen. "This article obviously became the focus of investors, who were already worried about a secondary impact from AI on existing businesses, and that anxiety reached a fever pitch when our article pointed out the worst-case scenario." Citrini Research's model portfolio includes the following AI positions: Nvidia, Alphabet Inc., Macronix Electronics Inc., and MediaTek Inc. The company has been publishing stock portfolios based on its thematic investment philosophy since its inception. van Geelen stated that Citrini has historically been criticized for being overly bullish.