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As AI concerns weigh, trucking stocks fall.

Stocks in trucking and logistic companies fell on Thursday, as investors feared that AI technology would increase competition for firms that rely on software.

Landstar System, C.H. Robinson fell by more than 14 percent, while Dow Jones Transportation Average dropped 4%.

Investors are concerned that the steep fall in logistics shares follows a recent drop in software stocks. They fear future AI products will cause fierce competition among established businesses, eroding their profit margins.

These fears contrast with the optimism that has driven Wall Street to record-breaking highs over the past few years. Jeffrey Favuzza, a trader at Jefferies, wrote in a note to clients on Thursday that the underlying theme for not only Tech but also for all corners of the market is a shoot first ask questions later approach for any market area with an AI headline.

Algorhythm Holdings, a logistics company focused on AI, said that its SemiCab division increased customers' freight volume by?300%-400% without a corresponding rise in operational staff. Algorhythm Holdings' stock soared by about 30%, boosting its stock market value to $6 million.

Algorhythm sold karaoke machines before. Algorhythm Holdings changed its name from The Singing Machine Company to Algorhythm Holdings in August after selling the business to Stingray Music.

Last week, global markets were shook by the launch of 'plug-ins' for Claude Cowork agent by?AI developer Anthropic. This rekindled fears that AI systems are rapidly evolving and could threaten traditional software companies. Reporting by Lance Tupper, New York; and Noel Randewich, San Francisco.

(source: Reuters)