Dimon Sees Rivals Doing 'Dumb Things' In Credit, AI Scare Trade Returns |The Opening Trade 2/24/2026
•February 24, 2026
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Why It Matters
The confluence of reckless credit growth, AI‑driven equity turbulence, and looming tariff hikes forces investors to reassess risk exposure and seek resilient sectors amid heightened geopolitical uncertainty.
Key Takeaways
- •Dimon warns banks are repeating pre‑2008 “dumb” lending practices.
- •AI‑related scare trade slashes software and delivery stocks, IBM down 13%.
- •U.S. threatens to raise tariffs to 15%, fueling global trade uncertainty.
- •Emerging‑market hardware demand rises as Asia rebounds post‑Lunar New Year.
- •Stalled EU sanctions keep Ukraine financing fragile, prolonging war risks.
Summary
The Opening Trade program highlighted several market‑shaking themes: Jamie Dimon’s warning that banks are reverting to pre‑2008 “dumb” lending practices, a fresh AI‑related scare trade that hammered software, delivery and credit‑card firms, and a volatile tariff environment as the Trump administration eyes a jump from 10% to 15% on imports.
Dimon drew parallels between today’s credit‑expansion frenzy and the run‑up to the Global Financial Crisis, noting that lenders are chasing net‑interest‑income at the expense of risk discipline. Meanwhile, the “Katrina” report and Anthropic’s Claude update sparked a sell‑off in AI‑exposed equities, with IBM tumbling 13% and private‑credit exposures to software firms under pressure. At the same time, the U.S. Treasury’s pending tariff hike and a suite of new trade probes are rattling commodities and emerging‑market equities, especially as Asia reopens after the Lunar New Year.
Notable soundbites included Dimon’s blunt comment, “people are doing dumb things for money,” and the market’s reaction to IBM’s steep decline, the most severe in 25 years. Trump’s State of the Union is expected to address the tariff agenda, potentially cementing a 15% rate, while EU leaders remain dead‑locked on fresh sanctions for Russia, leaving a €90 billion loan to Ukraine in limbo.
For investors, the convergence of credit‑risk complacency, AI‑sector volatility, and escalating trade protectionism creates a fraught landscape. Scrutinizing loan‑book quality, diversifying away from over‑exposed software names, and considering hardware‑heavy emerging markets may mitigate downside while positioning for any upside from policy shifts.
Original Description
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, asked about fierce competition across the financial industry, said he’s starting to see parallels to the era before the 2008 financial crisis, when a rush to make loans ended disastrously.
Stocks staged a cautious rebound after fears about the disruptive impact of artificial intelligence sparked an indiscriminate selloff across broad swathes of the market. The so-called AI scare trade has become a dominant theme for stocks, with selling spreading beyond software to hit insurance brokers, private credit, cybersecurity and even real estate services.
Chapters:
00:00:00 - The Opening Trade - 2/24/2026
00:00:54 - AI Scare Trade
00:03:24 - Trump’s 10% Global Tariff
00:05:27 - Russia-Ukraine Conflict Enters Fifth Year
00:08:24 - Daybook
00:10:00 - Need To Know: UK Police Releases Mandelson on Bail: PA
00:13:39 - Citrini Report Fuels AI Scare Trade
00:26:00 - EU Foreign Ministers Meet Today in Brussels
00:39:14 - MLIV
00:42:59 - Stocks To Watch
00:47:38 - The Market Open
00:49:51 - AI Fear Hits Delivery, Payment, Software Stocks
00:58:23 - Core 6
01:03:08 - StanChart Unveils $1.5B Buyback As Profit Misses
01:06:48 - Dimon Sees Parallel to Pre-Crisis Era
01:13:53 - Need To Know: State of the Union
01:16:05 - Citrini Report Fuels AI Scare Trade
01:19:46 - Enterprise Britain Launches Today
01:28:14 - Trump’s 10% Global Levy Takes Effect
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