U.S. Stocks Slip as AI Fears Persist, Oil Prices Climb

Booking Holdings, Carvana, and other companies seen as vulnerable to AI disruption see share price declines.

Published on Feb. 26, 2026

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U.S. stocks fell on Thursday as concerns about the impact of artificial intelligence (AI) technology continued to weigh on the market, particularly for companies seen as potential victims of AI disruption. Oil prices also rose amid worries about a potential conflict between the U.S. and Iran. The S&P 500 slipped 0.3%, the Dow Jones Industrial Average dropped 0.5%, and the Nasdaq Composite declined 0.3%.

Why it matters

The sell-off in stocks of companies perceived as vulnerable to AI reflects a broader fear among investors about the disruptive potential of the technology. This 'shoot first, ask questions later' mentality is impacting not just tech firms, but also industries like software, legal services, and logistics. The AI-driven uncertainty is also hurting private credit companies that have lent money to these potentially affected businesses.

The details

Booking Holdings, the parent company of Booking.com, Priceline, and OpenTable, dropped 6.1% as investors worry that AI-powered competitors could take away its customers. Carvana also fell 7.9% despite reporting stronger-than-expected quarterly profits, as investors focused on the company's lower-than-expected profit per vehicle sold. Meanwhile, oil prices rose 1.9% amid concerns about a potential conflict between the U.S. and Iran, which could disrupt global oil supplies.

  • On Thursday, February 19, 2026, U.S. stocks fell and oil prices rose.

The players

Booking Holdings

The parent company of Booking.com, Priceline, and OpenTable, which has seen its stock price decline due to fears about AI-powered competitors.

Carvana

An online auto retailer that reported stronger-than-expected quarterly profits, but saw its stock price fall as investors focused on lower-than-expected profit per vehicle sold.

Iran

A country with some of the world's largest oil reserves, whose potential conflict with the U.S. has contributed to the rise in oil prices.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The market's reaction to the threat of AI disruption highlights the growing uncertainty and fear surrounding the technology's potential impact on various industries. As companies and investors grapple with these concerns, the broader economic implications, such as the impact on private credit markets, will likely continue to be a focus of attention.