AI Panic Is Back as Dimon Sees Parallel to Pre-Crisis Era

It’s not just stock valuations that are stretched, but belief in the longevity of the rally. The S&P 500 is back at levels first reached in October, while its 10-day moving average has plateaued for much of this month — despite sharp daily swings in the US benchmark.

Investors are seeing traps everywhere as excitement over the AI-fueled boom turns to paranoia about which industries could be ravaged by the technology. IBM became the latest casualty, tumbling the most since the dotcom bubble burst after AI startup Anthropic PBC said its Claude Code tool can help modernize COBOL, a dated programming language that’s mostly run on IBM computers.