Why did AI ‘science fiction’ spur market panic? We asked a behavioral-finance expert to find out.

A speculative blog post by Citrini Research suggested a future where AI replaces knowledge work, leading to a $200 billion loss in software stocks on Monday. The iShares Expanded Tech-Software Sector ETF fell nearly 5%, outpacing the S&P 500's 1% decline.

Investors reacted to this hypothetical scenario with panic, highlighting the volatility in tech markets. The incident underscores the risks of overreacting to speculative narratives, which can lead to significant financial