\n \u201cMarket is in shoot first, ask questions later mode, with any names\/sectors that could be impacted by AI disruption taking a hit,\u201d Mohit Kumar, a strategist at Jefferies, said in a note.\n <\/p>\n
\n The slump in shares points out a major change for investors going forward: AI, which had been powering big rallies in tech and other stocks for months, could now actually drag on some parts of the market.\n <\/p>\n
\n Shares of major insurance brokers fell on February 9 after Madrid-based startup Tuio unveiled a new insurance app built with ChatGPT, according to UBS.\n <\/p>\n
\n That sparked fears that AI tools could eat into existing companies\u2019 business models and customer bases. Shares of professional services and insurance companies sank. Marsh shares (MRSH<\/a>) tumbled 7.5%. Arthur J. Gallagher shares (AJG<\/a>) dropped 9.85%.\n <\/p>\n \n But Brian Meredith, an analyst at UBS, said in a note that he thinks the sell-off was \u201cmeaningfully overdone,\u201d noting that insurance brokers remain \u201cessential intermediaries\u201d for household financial decisions, and it is unlikely AI will ultimately upend the industry.\n <\/p>\n \n On Tuesday, tech startup Altruist announced<\/a> a new tax planning feature for Hazel, the company\u2019s AI tool. That stoked fears that the specialized client services offered by brokerage and wealth management firms could face increased competition.\n <\/p>\n \n Charles Schwab (SCHW<\/a>) shares dropped 7.42% Tuesday. Shares of financial services company LPL Financial (LPLA<\/a>) and Raymond James (RJF<\/a>) slumped 8.75% and 8.31%, respectively.\n <\/p>\n \n Real estate services found themselves in the barrel on Wednesday and Thursday.\n <\/p>\n \n Cushman & Wakefield shares (CWK<\/a>) tumbled 13.8% Wednesday and 11.5% Thursday. Shares of real estate service companies CBRE Group (CBRE<\/a>) dropped 12.2% and 8.8% across the two days. Jones Lang LaSalle (JLL<\/a>) fell 12.5% and 7.6%.\n <\/p>\n \n \u201cWe believe investors are scrutinizing high-fee, labor-intensive business models viewed as potentially vulnerable to AI-driven disruption,\u201d Jade Rahmani, an analyst at Keefe, Bruette & Woods, said in a note.\n <\/p>\n \n And AI has the potential not just to compete with traditional real estate brokerages and agents, but to slash demand for office space in general, as AI executives predict their technology will eliminate swaths of the economy.\n <\/p>\n \n \u201cIf there are less office workers in the long run as a result of AI, there will be less demand for office space,\u201d CBRE Group chief executive Bob Sulentic said on the company\u2019s earnings call on Thursday morning. \u201cThat would be a long-term trend to unfold.\u201d\n <\/p>\n \n The Dow Jones Transportation Average \u2014 an index of 20 companies in the transportation industry \u2014 sank 4% Thursday and had its worst day since April.\n <\/p>\n \n The culprit was Algorhythm Holdings, which announced<\/a> a new tool that could improve efficiency and better optimize the trucking business.\n <\/p>\n \n The reaction was swift: Shares of RXO (RXO<\/a>), a freight company, plummeted 20.45% on Thursday. Shares of logistics company C.H. Robinson Worldwide (CHRW<\/a>) dropped 14.54%.\n <\/p>\n \n \u201cWhile perceptions of artificial intelligence are influencing recent market activity, C.H. Robinson has been a leader in AI for more than a decade and we believe AI will only continue to strengthen our performance and widen our competitive moat,\u201d C.H. Robinson said in a statement<\/a>.\n <\/p>\n \n Algorhym\u2019s announcement was all the more surprising considering the company once specialized in selling karaoke machines before pivoting to become an AI and logistics company.\n <\/p>\n \n \u201cIt\u2019s perhaps indicative of the state of markets at the moment that a $6 million market cap company that until recently specialized in karaoke helped wipe tens of billions off logistics stocks to add to the weakness,\u201d Jim Reid, global head of macro research at Deutsche Bank, said in a note.\n <\/p>\n![\"Crowds](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/02\/gettyimages-2241476296-20260213145727138.jpg\")
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