Market sentiment has shifted dramatically following a viral 7,000-word analysis by Citrini Research founder James van Geelen. The report, titled The 2028 Global Intelligence Crisis, outlines a hypothetical scenario where artificial intelligence disrupts the global economy to an unprecedented degree. The immediate reaction on Wall Street was a sharp selloff. The S&P 500 fell more than 1% in a single session, while the Nasdaq Composite dropped 1.1%. Software stocks bore the brunt of the volatility, with a major sector ETF tumbling over 4%. This "scare trade" suggests that investors are increasingly sensitive to the long-term structural risks posed by rapid AI adoption. The essay describes an "intelligence displacement spiral." It suggests that as AI becomes capable of executing complex business tasks, it could hollow out the white-collar workforce. The report projects a potential unemployment rate exceeding 10% by 2028. This loss of human income leads to what Van Geelen calls "Ghost GDP"—a situation where corporate productivity rises due to automation, but consumer demand collapses because machines do not buy goods or services. Market data reflects these growing anxieties. While big tech firms reported high revenue growth of 9% for the previous quarter, analysts are now forecasting a slowdown. Estimated revenue growth for 2026 has been adjusted downward to 8.7% for the first quarter and as low as 7.3% by the third quarter. The tech sector, which led the market for years, saw a 5% decline in early February 2026 as skepticism over return on investment intensified. The fallout is spreading beyond software into credit and housing markets. Private credit lenders, who financed many tech firms based on steady revenue projections, now face higher default risks if AI undercuts those business models. Additionally, if mass white-collar layoffs occur, the strain on mortgage payments could trigger a broader housing crisis. The Citrini report even speculates on a 57% crash in the S&P 500 by late 2027 if these trends accelerate. Current economic indicators provide a mixed picture. While national weekly wages grew by 7.5%, employment in AI-exposed sectors like computer systems design has already declined by 5%. This suggests that while top-tier talent is seeing higher pay, entry-level and mid-tier roles are being phased out. Investors are now rotating toward "safe-haven" assets. Gold and Treasuries have seen increased interest as the VIX volatility index rose 10.1% to reach 21.01. The market is no longer pricing in just the potential of AI, but the potential for a deflationary economic cascade that could redefine the global financial landscape.