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AI Apocalypse? Dumb Money Bets Tech Will Fall First.

AI's Impact on Tech Stocks and Ethical Leadership in Business Under Scrutiny

New York, NY - The stock market experienced turbulence this week as investors reassessed the impact of artificial intelligence on the tech sector, while a new study revealed a lack of confidence in moral leadership among business executives. The tech and software sector took the brunt of the market's downturn, as investors began to realize that the promise of AI won't always translate to immediate gains for all companies.

The S&P 500 index closed at 6,882 yesterday, a 0.51% decrease after spending much of the previous month near the 7,000 mark, according to Fortune. Global markets also reflected this uncertainty, with South Korea's KOSPI index experiencing a significant drop of 3.86%. The shift in investor sentiment came as "dumb money" entered the market, prompting a realization that AI's benefits might initially favor a select few companies, potentially at the expense of others.

Meanwhile, a study by the HOW Institute for Society, highlighted by Fortune, indicated a crisis in moral leadership. The 2026 study, which surveyed over 2,500 U.S. workers, found that less than 10% of employees believe their bosses demonstrate moral leadership. Dov Seidman, founder and chairman of LRN and the HOW Institute for Society, has studied leadership behaviors for decades. The study suggests a disconnect between leaders' intentions and their actual practices.

In related AI developments, the AI community continues to monitor the progress of large language models. MIT Technology Review reported that METR, an AI research nonprofit, updates a graph that tracks the development of AI capabilities after each major model release from companies like OpenAI, Google, or Anthropic. The graph suggests that certain AI capabilities are developing at an exponential rate, with recent models like Claude Opus 4.5 outperforming previous trends.

In other science news, NPR reported on research that could change our understanding of dinosaur growth. Paleobiologist Anusuya Chinsamy-Turan from the University of Cape Town, by examining thin slices of crocodile bones, concluded that researchers may have been overestimating some dinosaur ages. "It changes how we think about dinosaur growth," Chinsamy-Turan said, according to NPR.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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