Barclays Bank Warns: AI-Driven Selling Momentum Is Intensifying

Barclays Bank stated that the AI-driven market sell-off may persist, with investors adopting a "sell first, think later" approach.

Analyst Emmanuel Cau pointed out that the overall market remains resilient, but concerns about the disruptive impact of AI are exacerbating divergences between sectors. Traditional labels like cyclical stocks and defensive stocks are no longer relevant; nowadays, stocks are categorized based on perceptions of their "AI immunity" or "AI vulnerability."

Commodities, industrials, healthcare, and consumer goods sectors are considered relatively less affected by AI. Media, software, financial services, logistics, commercial real estate, and some tech sectors are seen as higher risk—despite strong earnings momentum, the selling is becoming increasingly indiscriminate.

Barclays warned that stress is spreading to the credit market and putting pressure on the banking sector. In the short term, this trend may be difficult to contain, but the bank believes long-term opportunities are emerging.