Economic Forecast: Increasing Gales of Creative Destruction

A report from Equibles analyzing about 12,000 S&P 500 earnings reports found the average next-day move rose from 3.4% in 2021 to 5.3% so far in 2026. The share of reports producing a move of 10% or more roughly tripled, from 4.4% to 13.3%. Tech stocks have averaged 8% moves over the past year.

So far this morning, as a dramatic example of this, Google's stock has fallen about 12% from yesterday's close, down a stunning $900 billion in valuation since its high in May of this year. 

AI has changed the weather forecast for the stock market to "increasing gales of creative destruction," as it creates and destroys businesses, industries, and career paths.

We may need more safety nets.