Artificial intelligence is dominating market attention. In the stock market, this often means another group of stocks is set for a difficult week.
The latest casualties of this technology are stocks in the real estate, trucking, and logistics sectors. Alongside financial and software service stocks, they have experienced significant declines due to AI-related concerns.
Elon Musk stated on a podcast last week that office buildings could soon be left empty as AI replaces employees. Matt Shumer, Co-founder and CEO of OtherSide AI, expressed a similar view in an article, suggesting AI could eliminate entry-level white-collar jobs. Fewer people commuting to offices would naturally lead to fewer leases.
The pressure on the freight industry is more specific. AI company Algorhythm Holdings introduced a tool claiming to enable operators to increase freight volume by 300% to 400% without hiring additional staff. This prospect directly triggered a sharp drop in transportation and logistics stocks.
However, AI is not negatively impacting profits for all companies. In Thursday's European trading, shares of industrial giant Siemens edged higher after the company raised its profit forecast for the 2026 fiscal year.
Siemens CEO Roland Busch stated, "We believe the real-world impact of AI—such as in industrial manufacturing, product design, or operational management—will arrive faster than we anticipated."
Shares of French cosmetics company L'Oréal, traded in the US, fell 7.3% overnight after the company reported full-year sales that missed expectations.
Meanwhile, the European Union approved an economic restructuring plan on Thursday aimed at boosting the bloc's competitiveness. This comes as global trade relations become more fragmented due to policies from the Trump administration.
The issue extends beyond economics. The Munich Security Conference opened on Friday, with its Chairman, Wolfgang Ischinger, noting that the international order has been shaken, making the EU's economic reforms about far more than just funding.