iShares Expanded Tech-Software ETF Falls 4.75% After AI Doom Note as Yardeni Keeps 10,000 Target
iShares Expanded Tech-Software ETF fell 4.75% Monday after Citrini Research’s hypothetical 2028 AI crisis projected 10.2% unemployment and a 38% S&P 500 collapse from October 2026 highs. Ed Yardeni countered that AI boosts productivity and kept his S&P 10,000 target, while Anthropic’s event and co-author’s short admission add sentiment risk.
1. ETF Plunge Triggered by AI Crisis Scenario
The iShares Expanded Tech-Software Sector ETF fell 4.75% Monday after a speculative report outlined a scenario where AI-driven productivity gains trigger a negative feedback loop, pushing unemployment to 10.2% and dragging the S&P 500 down 38% from October 2026 highs.
2. Yardeni’s Bullish Rebuttal
Veteran strategist Ed Yardeni rejected the doomsday thesis, arguing AI augments rather than replaces workers and emphasizing that models lack true intelligence; he reaffirmed his view that market gains will propel the S&P 500 to 10,000 by 2030.
3. Ongoing AI Sentiment Drivers
Investor sentiment remains unsettled with Anthropic hosting an enterprise event that could reveal new AI agent developments and a report co-author admitting short positions, while JPMorgan faces questions on software exposure, underscoring volatility in AI-driven software stocks.