The stock market's AI-layoff trade

The stock market's AI-layoff trade

Amazon CEO Andy Jassy, HP CEO Enrique Lores, and IBM CEO Arvind Krishna (from left to right).Noah Berger/Getty; David Becker/Getty; Andy Wenstrand/Getty; Tyler Le/BIThis post originally appeared in the Business Insider First Trade newsletter.You can sign up for Business Insider's First Trade newsletter here.In the tech industry right now, you either use AI or you get left behind. Companies know this, and they've gone all-in.To most, this means a…

The First Big Trade of 2026: Betting on AI Layoffs and the Stocks That Benefit

Wall Street has found its opening move for 2026, and it’s grim for workers. The so-called “AI layoff trade” is emerging as a dominant investment thesis heading into the new year, with fund managers and analysts increasingly betting that companies slashing headcount through automation will be rewarded by markets. Not someday. Now. According to Business Insider, traders are positioning around the idea that artificial intelligence won’t just augmen…