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China Defies Global ‘AI Scare Trade’ as Investors Chase Winners

Bloomberg Markets
Sunday, February 22, 2026 at 12:00 AM
~4 min read
Trade

Original Report

US markets are gripped by the “AI scare trade,” with investors selling software firms and wealth managers on concern that rapid advances in artificial intelligence will erode established business...

US markets are gripped by the “AI scare trade,” with investors selling software firms and wealth managers on concern that rapid advances in artificial intelligence will erode established business models.

Glass House Analysis

International economic policy has concrete impacts far beyond diplomatic circles. Tariffs show up in the price of goods at stores, supply chain disruptions affect whether products are on shelves, and trade tensions can mean job losses in export-dependent industries. The globalized economy means that decisions made abroad can affect workers and consumers domestically.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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