Dow Slides Nearly 800 Points as AI and Tariff Risks Rattle Investors

U.S. Stocks experienced a significant downturn on Monday, February 23, 2026, as investors reacted to a combination of escalating concerns surrounding the impact of artificial intelligence (AI) and the re-emergence of protectionist trade policies under President Donald Trump. The Dow Jones Industrial Average plummeted nearly 800 points, signaling a shift in market sentiment.

Market Performance

The Dow Jones Industrial Average closed at 48,804, a decrease of 822 points, or 1.7% [1]. The S&P 500 also fell, dropping 72 points, or 1%, to close at 6,837.75 [2]. The Nasdaq Composite experienced a more moderate decline, falling 1.1% to 22,627.27 [2]. In contrast, gold, often considered a safe-haven asset during market volatility, rose 3.4% to $5,254 [1].

AI Disruption Concerns

A growing anxiety over the potential disruption caused by AI applications is weighing heavily on investor confidence. Until recently, AI had been a driving force behind market gains, but analysts now suggest it is becoming a “net negative” for the equity market [1]. This shift in perception is fueled by fears about the impact of AI on white-collar jobs, highlighted by a recent report from Citrini Research [1]. The Citrini Research report posits a scenario where AI-driven automation leads to a rise in unemployment, potentially reaching 10.2% by 2028 [1].

Specific companies within the software sector have been particularly affected. IBM shares declined by 13% following Anthropic’s announcement of new programming capabilities for its Claude Code product [2]. Other software companies, including Microsoft and CrowdStrike, also experienced significant losses, dropping 3% and nearly 10% respectively [2]. The impact extends beyond software, with companies in trucking, logistics, commercial real estate, and financial services also facing downward pressure [2]. American Express and Mastercard shares also fell, losing 7% and nearly 6% respectively [2].

Trump’s Tariff Policy

Adding to the market’s woes is President Trump’s decision to raise global tariffs to 15% [1], following a Supreme Court ruling on Friday that struck down his administration’s previous emergency tariffs. While the Supreme Court ruling initially provided a brief boost to the market, the subsequent announcement of higher tariffs quickly reversed those gains [1]. The European Union has already rejected the proposed tariff increase, stating “a deal is a deal” and requesting clarification from Washington [3].

Looking Ahead

Investors are now closely watching Nvidia’s earnings report, scheduled for release on Wednesday, as a key indicator of the health of the AI chip market and a potential gauge of the broader impact of AI disruption [3]. The confluence of AI-related anxieties and trade policy uncertainty is expected to continue to influence market volatility in the near term.