American Express Shares Plunge as AI Disruption Fears Rattle Financial Sector

American Express (AXP) shares experienced a significant decline on Friday as investor anxiety grew over the potential for Artificial Intelligence (AI) to disrupt traditional financial models. The sell-off was fueled by concerns that rapid advancements in AI technology could undermine the long-term viability of established payment processors and credit providers. Adding to the market's unease, a prominent firm within the financial sector recently announced substantial layoffs linked to a strategic shift toward new technologies. This workforce restructuring has intensified fears that traditional financial institutions may face structural challenges in adapting to an AI-driven landscape. Analysts suggest that the pressure on AXP reflects a broader trend of uncertainty affecting major players across the industry. Consequently, the financial sector ETF (XLF) also felt the impact of this shifting sentiment regarding technological disruption.