Jan Pierce, S.C.

Jan Pierce, S.C. Jan Pierce, S.C. provides legal services and support to individuals, entrepreneurs, corporations, cooperatives, and non-profits.

(414) 755-2258; [email protected]

"The complaint Donald Sauve submitted in Minnesota last year was a familiar type in the nation’s federal courts.In legal...
05/26/2026

"The complaint Donald Sauve submitted in Minnesota last year was a familiar type in the nation’s federal courts.

In legal parlance, Mr. Sauve filed “pro se,” Latin for “for oneself,” meaning he had no lawyer as he sued his ex-wife, her lawyer and a state judge who had rejected one of his earlier legal challenges as “frivolous.”

In a handwritten scrawl, he previously filed a suit asking for $275,000 in damages, claiming he had been unlawfully deprived of his home. It took less than a month for Judge Jerry W. Blackwell to dismiss the case for lack of jurisdiction.

Three months later, Mr. Sauve was back. This time he had help.

Using ChatGPT and Claude, Mr. Sauve filed a new complaint in federal court. This time, it was a neatly typed document accompanied by 50 additional filings including a “case law synthesis” of legal research he said backed up his claim. In an interview, Mr. Sauve said A.I. had provided “the only path forward” for his case.

“Knowledge is power,” he said.

Federal judges and legal experts said they are increasingly seeing filings like Mr. Sauve’s flooding court dockets and clogging an already overburdened system as A.I. supercharges pro se litigation — even as it opens up the legal system to people who might not otherwise be able to afford to bring a case.

The eventual outcome for Mr. Sauve was the same. In September, two months after he filed, Judge Patrick J. Schiltz, chief of Minnesota’s Federal District Court, dismissed his suit again, this time in a 14-page opinion that found he had failed to clearly state a claim.

But first, each one of Mr. Sauve’s filings had to be read, captioned by the clerk and entered on the public docket.

Judge Schiltz entered an order that any further filings would be “shredded without any additional notice.”

“A litigant cannot dump hundreds of pages of documents on a court and expect the court to sift through them to find facts or arguments that might support claims against a defendant,” Judge Schiltz wrote, as he dismissed the case.

In interviews, judges and experts said that the use of A.I. by pro se litigants also offers potential upsides. “A.I. presents great promise for enhancing access to justice for those without the resources to retain counsel or to represent themselves effectively,” wrote Judge Michael Y. Scudder of the U.S. Court of Appeals for the Seventh Circuit this year, when ruling on a pro se case.

And some federal judges are also discussing ways that A.I. could be used responsibly to help with workflow in their own chambers, noting that it’s possible that A.I. could someday be used to help clerks to read and assess a larger number of filings.

In the meantime, however, many judges emphasized the seriousness of the immediate workload problem created by A.I.-enabled pro se filings. Judge Schiltz, who declined to discuss any particular case, characterized the overall problem as “an existential threat to the federal courts.”

The arrival of A.I. has caused the number, length and complexity of pro se filings to “increase dramatically,” he said. “There’s just no end in sight, and no satisfactory solution in sight either.”

‘Something Has to Give’

Each year, federal district courts handle roughly 300,000 new civil lawsuits; another 42,000 new cases are filed in the courts of appeal. One third of that combined caseload comes from pro se litigants, according to data compiled by the Administrative Office of the U.S. Courts, which helps oversee the federal court system.

Many of them are prisoners using law libraries to assert their civil rights or otherwise challenge prison conditions. Others are ordinary people who either can’t afford a lawyer or believe themselves to be their own best advocate. Between 1998 and 2017, pro se plaintiffs lost 96 percent of the cases they brought.

But judges, lawyers and academics say the volume of filings by pro se litigants has risen dramatically alongside A.I.’s widespread adoption. The proportion of pro se cases filed by non-prisoners increased from 11 percent of all civil cases five years ago to 16.8 percent in 2025, according to a new study by two doctoral candidates that has not yet been peer reviewed.

The study found that much of the increase comes from the use of A.I. by pro se plaintiffs. The number of pro se complaints flagged as likely containing A.I.-generated text rose from virtually zero in 2019 to more than 18 percent in 2026, the study found.

“Judges still only have 24 hours in a day,” said Anand V. Shah of the Massachusetts Institute of Technology and one of the study’s authors. “Something has to give at some point.”

For litigants, the power of generative A.I. lies in its ability to turn a few short prompts from a user into lengthy documents with headers, citations and other earmarks of a legitimate legal brief.

Steven Donohue, a staff attorney for the United States District Court for the District of Minnesota in charge of reviewing pro se filings, said he observed a roughly 50 percent uptick in filings from non-prisoners starting around March 2025.

All sorts of pro se cases have been on the rise, Mr. Donohue said, including lawsuits alleging false arrest, malicious prosecution and messy domestic disputes involving divorce. In some instances, the cases involved “the bread and butter of state court,” now filed in federal court with the help of A.I.-inspired applications of federal law.

“Every eviction action could turn into a Fair Housing Act violation,” he said.

With careful human oversight, the output of A.I. can sometimes rival the work of a legal professional, at least for simple matters like drawing up a lease. But in more complex cases, as well as matters that might not be appropriate for a lawsuit, A.I.’s well-established tendency to sometimes flatter and fabricate can cause it to churn out pages of quasi-legal boilerplate that lacks legal merit.

Judges “look for truth,” said Judge Joshua D. Wolson of the Eastern District of Pennsylvania at a judicial conference in May, speaking to the broader implications of A.I. “When the ability to make things that look like truth but aren’t — the cost goes down, the quality goes up — that’s a real challenge for us as courts.”

Anthropic, the company that owns Claude, did not respond to a request for comment. A spokeswoman for OpenAI, the company that owns ChatGPT, declined to comment. Their product’s terms of use state that users own and bear the responsibility for its output, which should not be used as “a substitute for professional advice.”

(The New York Times sued OpenAI and Microsoft in 2023, claiming copyright infringement of news content related to A.I. systems. The two companies have denied those claims.)

Fighting Alone

Despite the drawbacks, judges and advocates said A.I. could be democratizing for the legal system — opening the courts to people who might otherwise not be able to afford lawyers.

“Used appropriately, it could be an incredibly powerful tool for someone who believes themselves to have been wronged and has a good faith belief in entitlement to redress,” Mr. Donohue said.

Decades before A.I., pro se filings have led to monumental changes in the law. In 1963, a handwritten petition to the Supreme Court by Clarence Earl Gideon, a 52-year-old convict in a Florida state prison, established a constitutional right to counsel for felony cases in state courts.

Sateesh Nori, a legal aid lawyer in New York for 20 years, said he embraced A.I. two years ago after concluding that legal aid resources in New York were failing to meet the city’s needs.

Despite a landmark law in 2017 that guaranteed free legal representation to low-income tenants facing eviction, Mr. Nori noted city data showing that as many as 50 percent still go to court without representation.

“The real problem is: how come these people don’t have another way, other than using A.I.,” he said.

Experts said there is little the courts can do to stem pro se filings even if they wanted to. People have a right, after all, to file lawsuits if they believe they have a claim. Peter Kaplan, a spokesman for the Administrative Office of the U.S. Courts, said his office was “aware of this issue” and “is gathering information” on its effects on the legal system.

In recent months, some courts have starting issuing standing orders warning prospective pro se filers that using generative A.I. could expose them to penalties.

When judges have run into filings with problematic hallmarks of A.I., such as citations to case law that look real but are in fact fictional, many have been lenient to filers who are not lawyers. But some have flashed exasperation, dismissed cases and even issued substantial fines.

In March, Judge Virginia Kendall, a federal judge in Illinois, fined a litigant $1,500 after concluding she had twice submitted a “fake case,” littered with hallucinated citations in violation of court rules.

“This wastes both the parties’ and the Court’s time attempting to locate nonexistent cases and unpack made up factual assertions,” she wrote.

States have also started to explore legislation that would make A.I. companies liable if their chatbots were found to have handed out legal advice in place of a lawyer or other licensed professional but such measures have not yet been adopted.

For some aggrieved litigants, pushback is unlikely to convince them to give up their A.I.-empowered legal arsenal. Mr. Sauve, the pro se filer from Minnesota, said he continues to pursue efforts to regain his old home. He lost possession it following a messy divorce, which included a finding from a judge that he abused his ex-wife and one of his children. He denies that allegation.

“They call me ‘frivolous.’ That appears to be a way that the court is protecting itself,” he said.

“OpenAI told me this, and I think Claude will confirm it as well,” he said of his belief that the law is on his side. “I did a lot of research into this whole situation.”

Mr. Sauve is 69 years old and currently living out of his car in Mora, Minn. He continues to pursue various forms of legal redress from a supermarket coffee shop.

With the help of A.I., he plans to soon make more “SCOTUS-grade filings,” he said, bringing new lawsuits to the state supreme court, a federal appeals court and a county court as well."

For years, courts have welcomed cases brought by self-represented litigants. Now those plaintiffs have A.I., and their filings are consuming more and more bandwidth.

"Rising defaults in private credit are rattling investors, while apparent fraud by some borrowers has fueled worries abo...
04/27/2026

"Rising defaults in private credit are rattling investors, while apparent fraud by some borrowers has fueled worries about lax underwriting. Investors are rushing to get their money out of funds to avoid getting stuck with big losses. Politicians are calling for—what else?—more regulation.

But private-credit problems pale in comparison to the less-reported risks in federal student loans and mortgages, which could ripple through the economy. The Biden team’s version of extend-and-pretend concealed the cracks for a time, but defaults are rapidly rising on government-backed loans. Taxpayers will inevitably be left holding the bag.

Start with student debt. Only 30% of the federal government’s $1.7 trillion student-loan portfolio is currently being repaid. Most borrowers are delinquent or their payments have been temporarily suspended while the Trump administration works to fix servicing problems caused by the Biden team’s quasi-forgiveness “SAVE” plan, which the courts blocked.

During the Biden payment pause, many borrowers upgraded their lifestyles and racked up more debt to pay for vacations, homes and cars. And why not? Joe Biden promised their loans would be forgiven.

“During the payment pause, borrowers repeatedly heard public signals suggesting student loan balances might be permanently reduced or eliminated,” the left-leaning Urban Institute notes in a recent report. “Against that backdrop, some households may have felt reasonably equipped to take on auto loans, enter the housing market, or expand their use of other credit products.”

The payment pause increased access to credit by temporarily improving credit scores of delinquent borrowers—on average by 103 points, according to one study. Low interest rates, pandemic government transfer payments and forbearance schemes at the same time made additional debt more manageable—at least for a time.

Credit scores also benefited from other government policies. In 2022, Fannie Mae instituted a “positive rent” initiative for landlords to report on-time rent payments—but not late or missed payments—to credit bureaus. Imagine if only A’s went toward a student’s final grade. Under political pressure, credit bureaus removed a large share of medical debt from borrower reports.

All of this made student-loan borrowers overextended, while also making them appear less risky to lenders. Among delinquent student borrowers, “38 percent now have an auto loan, up from 30 percent before the pandemic,” the Urban Institute notes. “The share with a mortgage has nearly doubled, rising from 8 percent in 2019 to 15 percent in 2025.”

But more borrowers have fallen delinquent on student and other debt since the payment pause ended in October 2024. “Student loan delinquency is increasingly intertwined with distress across other credit markets,” the report says. Expect delinquencies to rise more when administrative forbearance ends in July for some eight million borrowers.

Meanwhile, delinquencies are mounting on Federal Housing Administration mortgages. The government backed loans to overextended and risky home buyers whose incomes have been squeezed by inflation. The share of FHA borrowers in 2024 with debt-to-income ratios exceeding 43%—generally considered risky—rose to 64%, up from 55% in 2019 and 36% in 2007.

Many FHA borrowers bought homes during the student-loan payment pause, which temporarily increased their financial liquidity. The $500 a month they weren’t paying on their student loans could go for a mortgage payment. Not savvy personal financing, but colleges don’t teach that.

About 1 in 7 FHA loans originated between 2022 and 2025 defaulted within a year. As defaults mounted, the Biden team paid mortgage servicers to waive or reduce monthly payments of delinquent borrowers by 25% for up to three years. Missed or waived payments were added to the mortgage, which would have to be repaid when the loan matures.

So if a homeowner missed a $3,000 mortgage payment for six months, a servicer would add the $18,000 in missed payments, plus $27,000 in payment reductions, to his loan. If home prices continued to increase, or mortgage rates dropped significantly, the Biden FHA figured borrowers could make up the forborne payments when they sold or refinanced.

That assumption proved wrong. Mortgage rates have remained high, and home prices in many markets in the South are falling amid crimped demand. The Biden FHA repeatedly waived payments for delinquent borrowers, only for them to default again. Increasing numbers have fallen underwater because they haven’t built equity.

Some 55% of borrowers who received mortgage relief in 2024 fell behind again on payments within one year, according to an FHA report in December. “FHA is currently approaching a 60 percent redefault rate, which is unsustainable,” the report noted. Some 46% of borrowers in default as of last September had previously defaulted at least three times.

One-sixth of borrowers who took out FHA mortgages in 2024 currently owe more than their home is worth. The Trump administration last fall restricted mortgage workouts to once every two years so foreclosures don’t keep getting kicked down the road. As a result, foreclosures have shot up, which could push down home values in some markets, pushing more borrowers underwater.

If the economy slows, defaults on poorly underwritten government loans could spike. Unlike private-credit investors, taxpayers won’t be able to escape before the dirt hits the fan."

Federally backed student loans and mortgages are seeing increased defaults. Taxpayers are on the hook.

"Two big loans that were made during the postpandemic boom in private-equity buyouts are defaulting, whacking some priva...
04/26/2026

"Two big loans that were made during the postpandemic boom in private-equity buyouts are defaulting, whacking some private-credit funds and ratcheting up losses in the already troubled corner of Wall Street.

Software maker Medallia—a poster child for the intersection of investor concerns between technology and private capital—can no longer repay about $3 billion of loans from firms including Blackstone, KKR and Apollo Global Management. The lenders are negotiating to take control from private-equity owner Thoma Bravo, which will likely lose $5.1 billion it invested in the company in 2021, people familiar with the matter said.

At the same time, Blackstone, KKR and others are restructuring a $1.4 billion loan they made to help Harvest Partners and other private-equity backers pay for a 2021 buyout of dental-services company Affordable Care, the people said.

The losses are a small slice of the now $2 trillion in loans that private-credit funds have made to companies, but they are intensifying investor angst about the underlying health of these giant lenders on Wall Street.

“It’s worthwhile to separate fact from fiction,” Blackstone Chief Executive Stephen Schwarzman said about the perceived risk in private credit on a conference call Thursday with analysts. Defaults are rising, but the firm’s funds have plenty of cash and other resources to offset losses, he said.

Individual investors have been pulling money out of private-credit funds at a rising pace this year, a phenomenon fund managers have blamed on irrational fears fanned by the media. They highlighted how few of their loans were in arrears.

Now, losses are starting to pile up.

Earlier this week, Blackstone’s largest private-credit fund, known as BCRED, reported its nonperforming loans in the first quarter rose to a record 2.4% of its $80.5 billion portfolio.

Blackstone said Medallia and Affordable Care were the largest reasons for the increase.

“These companies combined represent approximately 1% of the fair value of BCRED’s portfolio,” a Blackstone spokesman said. “We’ve marked down the loans significantly, which is already reflected in performance.”

The fund-management company reported a 25% rise of distributable earnings in the first quarter but its shares dropped 6%.

Restructurings force private-credit funds to mark down loans, sometimes sharply. Blackstone and KKR valued their Medallia loans to around 80 cents on the dollar in December before slashing them to 60 cents this month.

Analysts worry that losses could be even higher if the businesses continue to struggle after lenders take them over, and that new defaults could keep coming.

“What we saw last quarter was a lot of bad getting worse,” said Finian O’Shea, an analyst at Wells Fargo. “Now it’s not worsening but it’s not getting better and that probably remains the case all year—a slow bleed.”

At KKR, the restructurings will add to defaults at one of its largest private-credit funds, which already had 5.5% of its loans in default in December. Credit ratings firm Moody’s downgraded the roughly $13 billion fund to junk debt status in March citing poor performance.

Medallia is an important test case for the private-credit industry because many firms concentrated 20% or more of their funds in loans to software companies. Now some of those borrowers are at risk of displacement by artificial intelligence. The coming “SaaSpocalypse” will likely double the default rate in private credit this year to 9%-10%, analysts at UBS said in a report this month.

Private-credit firms say their losses pale compared with the pain hitting private-equity firms that bet big on software and lose most or all of their investments in defaults.

Apollo executive John Zito, co-president of the firm’s asset-management arm, has said peers across private-equity have been arrogant about their values on buyouts, including Medallia.

“I literally think all the marks are wrong,” Zito told some investors, The Wall Street Journal reported. “Is that what you’re asking me? I think private-equity marks are wrong.”

Thoma Bravo, a longtime technology investor, and its founder Orlando Bravo have been clapping back. The firm signaled at a recent investor conference that it still sees buying opportunities and is differentiating between ventures that are likely to be disrupted by the AI revolution and those poised to be winners.

“Medallia is a fine company,” Bravo said last month on CNBC. “We made a mistake and that caused us to pay too much.”

Thoma Bravo’s other portfolio companies “are absolutely crushing it,” he said.

Medallia, which provides software for employee and customer feedback, faced problems even before the advent of AI. The interest expense on the loans Thoma Bravo used to purchase the company shot up in 2022 when the Federal Reserve raised benchmark interest rates, a widespread problem among leveraged buyouts at the time.

Sales also suffered because of increased competition from Qualtrics, another private-equity owned software company with debt troubles of its own.

The credit crunch came this year because Medallia’s loans contained provisions requiring Thoma Bravo to invest more in the business if it failed to meet earnings targets. Thoma Bravo has until the end of June to make the cash injection but it recently told Blackstone—Medallia’s largest lender—that it is turning the keys to the company over to creditors instead, people familiar with the matter said.

The private-credit funds hired Alvarez & Marsal as a financial adviser to vet Medallia’s finances and are aiming to restructure the company among themselves rather than in bankruptcy court, the people said. They are considering cutting Medallia’s loans to about $1 billion to $1.4 billion, or five to seven times the company’s $200 million of earnings before interest, taxes, depreciation and amortization, they said.

Creditors would also receive 100% of shares in the company."

Software maker Medallia and dental-services provider Affordable Care can’t repay billions borrowed from private-credit lenders including Blackstone and KKR.

"Doug Horner has seen plenty of customers walk into his northeast Ohio Mercedes-Benz dealership who owe more on their tr...
04/26/2026

"Doug Horner has seen plenty of customers walk into his northeast Ohio Mercedes-Benz dealership who owe more on their trade-ins than those cars are worth. But being $40,000 underwater on a pickup truck is a scary sign of a growing trend.

A prospective buyer recently sought to trade in a Ford F-150 Lightning for a Mercedes GLE Coupe, but that potential customer owed about $87,000 on the pickup truck. Horner estimates the Ford pickup truck was worth about $47,000—leaving the buyer well underwater.

“This is a battle that we’re fighting every day,” Horner said in an interview.

More Americans turning in their cars to buy new ones are encountering a difficult reality: Their vehicles aren’t worth what they owe.

About 30% of borrowers in the first quarter who traded in a car to buy a new one had negative equity, whereby they owe more on their loan than their car is worth, according to car-shopping website Edmunds. Those borrowers owed about $7,200 on average before getting a new loan, a 42% jump compared with the same period five years prior.

“The higher it goes, the chances are that people are never going to get themselves out of the situation,” said Jessica Caldwell, head of insights at Edmunds.

About a third of Americans trading in an older car have negative equity, which has been typical in the industry for years. But the average amount Americans are underwater has skyrocketed, Edmunds said, as buyers try to unload cars bought during the pandemic at high prices.

The increased level of negative equity represents another strain on an auto market already under pressure from pricey vehicles and elevated interest rates.

To offset those costs, more car buyers are taking on longer loan terms to keep monthly payments digestible. In the first quarter, the average loan was 70 months on new cars, according to Edmunds data. Car payments in excess of $1,000 are no longer uncommon and can stretch out more than eight years.

But consumers who are underwater on their loan end up paying more on average after rolling over the negative equity into their next car, compounding their debt even more.

The current situation dates to the pandemic’s semiconductor supply crunch, which led to a severe shortage of new cars available on dealer lots. Vehicle prices soared in response, and buyers—who either had the disposable income to spend or lacked other transit options during lockdowns—were willing to pay up.

“You had a lot of dealerships in the Covid era that were overcharging, to say the least,” said Eric Frehsée, president of the Tamaroff Group in the Detroit area. “You’re seeing a lot of those cars coming back and there’s a lot of negative equity because of that.” Frehsée said that his dealerships opted not to charge over sticker prices during the pandemic.

In 2026, buyers with negative equity financed an average of nearly $56,000 for a new car in the first quarter, about $12,000 more than the typical new-vehicle buyer, Edmunds said. That translates to a monthly payment averaging $932 for negative-equity borrowers, the highest level ever recorded. In April 2021, the average new car cost about $41,000.

At the same time, the situation reflects another sign of the current K-shaped economy, where affluent individuals are thriving while others struggle. Even with the increased level of negative equity, the average trade-in equity for a car in March exceeded $6,800, according to JD Power.

“The average consumer is in a good position when buying a vehicle,” said Tyson Jominy, JD Power’s senior vice president of data and analytics. Borrowers with negative equity, however, can have a difficult time securing a loan for a new car, and it could put them at greater risk of falling behind on their payments, studies show.

Consumers who rolled over negative equity from a prior vehicle loan were more than twice as likely to wind up having their car repossessed within two years, compared with those who netted money on a trade-in, a 2024 study from the Consumer Financial Protection Bureau found.

More borrowers have been defaulting on their loan payments, which typically results in a repossession. Default rates on car loans in March rose to the highest levels seen since 2010, according to Cox Automotive, an industry-research firm.

The auto industry has already been grappling with the potential woes of higher gas prices because of the war in Iran. Auto executives have said they don’t expect sales to be significantly affected by the conflict unless it continues for months.

Caldwell said that higher negative equity amounts are likely to persist in coming months. Amid the pandemic and the semiconductor crisis, interest rates rose, she said, meaning borrowers have continued to pay higher costs to take on new car loans.

“We know that people paid an increased price either way,” she said. “I don’t think it’s going to go back down.”"

The average amount a borrower with negative equity carries on a vehicle has jumped more than 40% since 2021

"It doesn’t take much to cause tumultuous stock moves in a market top-heavy with tech shares and jumpy about the prospec...
02/24/2026

"It doesn’t take much to cause tumultuous stock moves in a market top-heavy with tech shares and jumpy about the prospects for artificial intelligence.

But nothing underlines the sensitivity of stocks right now quite like what happened on Monday, when one of the factors behind the Dow’s 800-point drop was a 7,000-word hypothetical.

A viral report by Citrini Research tapped into a new strain of fears about AI, painting a dark portrait of a future in which technological change inspires a race to the bottom in white-collar knowledge work. Concerns of hyperscalers overspending are out. Worries of software-industry disruption don’t go far enough. The “global intelligence crisis” is about to hit.

The new, broader question: What if AI is so bullish for the economy that it is actually bearish?

“For the entirety of modern economic history, human intelligence has been the scarce input,” Citrini wrote in a post it described as a scenario dated June 2028, not a prediction. “We are now experiencing the unwind of that premium.”

Many of Monday’s moves roughly aligned with the situation outlined by Citrini, in which fast-advancing AI tools allow spending cuts across industries, sparking mass white-collar unemployment and in turn leading to financial contagion.

Software firms Datadog, CrowdStrike and Zscaler each plunged more than 9%. International Business Machines’ 13% decline was its worst one-day performance since 2000. American Express, KKR and Blackstone—all name-checked by Citrini—tumbled.

That anxiety, coupled with renewed uncertainty about trade policy from Washington, weighed down major indexes Monday. The Dow Jones Industrial Average led declines, falling 1.7%, or 822 points. The S&P 500 shed 1%, while the Nasdaq composite retreated 1.1%.

Fears of AI disruption have rolled across software, private credit, insurance and wealth-management firms in recent weeks. Earlier this month, transport stocks had one of their worst days ever after a onetime karaoke machine-maker touted new AI tools to streamline trucking. Many of those stocks soon after clawed back much of their losses, leaving some investors to describe the market as trigger-happy.

The pricing of AI-related disruption “is all happening sooner than most folks anticipated,” said Jordan Rizzuto, chief investment officer for GammaRoad Capital Partners. “Such is the nature of an accelerating technology.”

While investors on Monday kept rotating money into sectors such as energy and consumer staples, those industries carry relatively little weight in major indexes. Rizzuto also noted that the growing popularity of defensive plays can suggest Wall Street is growing more cautious about the road ahead.

“Be careful what kind of rotation you wish for,” he said.

Over the weekend, President Trump said he would increase to 15% his new global tariff aimed at replacing many of the import taxes ruled illegal by the Supreme Court last week. While that has injected yet more uncertainty into trade deals or ongoing talks, many analysts believe the economic impact will be relatively limited.

“We advise investors not to overreact to headlines,” Edward Jones strategist Angelo Kourkafas said.

Still, individual companies waiting for potential tariff refunds or planning new investments may not be immune. Trade-sensitive stocks including American Eagle Outfitters, Ralph Lauren and Yeti Holdings slumped Monday. So did logistics and transit firms, pushing the Dow Jones Transportation Average down 2.8%.

Bonds rallied, benefiting from investors’ flight to safer assets. The 10-year Treasury yield settled Monday at 4.026%, its lowest close since late November. Precious metals also resumed their rally. Front-month gold futures gained 2.9% to $5,204.70 a troy ounce, while silver rose 5.2% to $86.52 a troy ounce.

Monday’s market swings extended a run of AI-linked volatility. A small research outfit that has garnered a huge Substack following for macro and thematic stock research, Citrini said in its new post that software firms, payment processors and other companies formed “one long daisy chain of correlated bets on white-collar productivity growth” that AI is poised to disrupt.

Private credit firms, which have loaned huge sums to the tech industry in recent years, were among those hit Monday. Blue Owl fell 3.4%, while Apollo Global Management declined 5%. Lenders stretching from Wall Street’s biggest banks to regional counterparts also sold off.

“From a credit standpoint, the key risk is speed of disruption rather than its existence,” UBS analysts told clients recently. “A rapid shock within 12 months could overwhelm contractual protections, but we view a multi-year adjustment as far more likely.”

Shares in DoorDash also veered 6.6% lower Monday after Citrini’s Substack note called the delivery app a “poster child” for how new tools would upend companies that monetize interpersonal friction. In the research firm’s scenario, AI agents would help both drivers and customers navigate food deliveries at much lower costs.

In a social-media post Monday responding to Citrini, DoorDash co-founder Andy Fang said the rise of “agentic commerce” would require his firm to evolve in ways that work for both AI agents and real-world merchants.

“The ground is shifting underneath our feet,” Fang wrote, “and the industry is going to need to adapt to it.”"

Citrini Research’s thought experiment rattled investors already wary of tech disruptions. The Dow industrials fell 1.7%, or 822 points.

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