US stocks plunged Friday as Wall Street punished companies vulnerable to AI disruption while inflation concerns and geopolitical tensions boosted oil prices. The S&P 500 fell 0.4%, ending just its second losing month in 10, while the Dow Jones dropped 521 points (1.1%) and Nasdaq sank 0.9%. Investors fled stocks seen as potential AI losers amid growing fears about technology's impact on business models.

Block's workforce reduction by nearly half sent shockwaves through markets, with the company's stock jumping 16.8% despite cutting more than 4,000 jobs. Jack Dorsey warned that AI tools have fundamentally changed business operations, predicting most companies will make similar structural changes. Software firms and businesses potentially supplanted by AI competitors faced selling pressure, with Salesforce falling 2.3% after its earnings report.

Private equity companies exposed to software loans suffered particularly steep losses, with Apollo Global Management dropping 8.6% and Blue Owl Capital falling 6%. AI disruption fears have triggered swift sell-offs across diverse industries from trucking logistics to legal services, as investors reassess which business models can withstand technological transformation.