Market volatility has intensified following the release of a viral macro-analysis titled "The 2028 Global Intelligence Crisis." The report, published by Citrini Research founder James van Geelen, has sparked a significant sell-off across global indexes, driven by a dystopian forecast of the near-term economic landscape. The report details a "deflationary cascade" where rapid AI integration leads to mass white-collar layoffs. It predicts a scenario by June 2028 where the U.S. unemployment rate surges to **10.2%**, rendering traditional human labor obsolete in several sectors. This "intelligence displacement spiral" suggests that as payrolls shrink, consumer spending will soften, forcing companies to adopt even more AI to protect margins, creating a loop with no natural brake. Market reaction was immediate and sharp. On Monday, the **S&P 500** erased early gains to close down more than **1%**, while the Dow Jones Industrial Average fell **1.7%**, losing over **821 points**. The tech-heavy **Nasdaq Composite** declined **1.1%**, finishing at **22,627.27**. Investor anxiety was further reflected in the CBOE Volatility Index (**VIX**), which spiked **10.1%** to reach **21.01**. Software and cybersecurity firms have borne the brunt of the downturn. A major software ETF plummeted more than **4%**, while specific leaders like CrowdStrike and Zscaler saw intraday declines exceeding **10%**. Investors are increasingly wary of "Ghost GDP"—high corporate output that no longer translates into household income or tax revenue. The sell-off is compounded by broader fiscal concerns. The tech sector is already reeling from a **$1 trillion** loss in market value since late January, fueled by massive capital expenditure plans. Hyperscalers are projected to spend over **$600 billion** on AI infrastructure this year alone, a figure that has begun to exhaust investor patience. Adding to the instability, new policy shifts have emerged. Reports of a proposed increase in global tariffs to **15%** have driven a **2%** spike in gold prices, as traders seek safe-haven assets. Gold recently peaked above **$5,150** per ounce amid this heightened geopolitical and economic uncertainty. While some analysts view the recent "catastrophizing" as overdone, the consensus points to a harsh valuation reset. The market is pivoting from "efficiency flexing" to a deeper skepticism regarding the long-term durability of AI-driven revenue, especially as the "intelligence premium" for the global middle class begins to evaporate. [The 2028 Global Intelligence Crisis breakdown](https://www.youtube.com/watch?v=h1Eex37Iays) This video provides an expert analysis of the Citrini report and explains how AI spending fears are currently reshaping global tech valuations. http://googleusercontent.com/youtube_content/0