Jim Cramer Warns: AI Fears Have Made the Stock Market Incredibly Fragile – February 2026 Reality Check

Jim Cramer didn’t hold back.

On Monday’s Mad Money, he called the stock market “incredibly fragile” because of AI fears. The S&P 500 and Nasdaq each dropped more than 1%. Software and cybersecurity stocks got hammered hardest.

What Actually Triggered the Selloff

A weekend research note from Citrini Research titled “The 2028 Global Intelligence Crisis” did the damage.

The note is written like a future report from June 2028. It asks one blunt question: What if AI replaces white-collar jobs so fast that unemployment spikes toward 10%?

Cramer called it a “dystopian tale” and “a reach.” But he admitted the market’s reaction was real:

“I can’t help but grow more pessimistic when I see how easily a piece of science fiction can crush the market as if it’s science fact.” — Jim Cramer, Mad Money, February 23, 2026

The Stocks That Got Crushed

Two names in Cramer’s own Charitable Trust and Investing Club took the biggest hits:

• CrowdStrike (CRWD): Down another 10% Monday (already -25%+ YTD) Reason: Anthropic just released a new security tool for Claude. Investors fear it will eat traditional cybersecurity spending.
• Salesforce (CRM): Down 3.8% Monday (now down ~33% YTD) Reason: Growing worry that AI efficiency means companies need fewer employees — and therefore fewer software seats and licenses.

Cramer’s Straight Talk on AI and Jobs

Cramer is not anti-AI. His long-term view remains clear:

“There will be a lot more jobs created than destroyed as this new technology becomes integrated into the workforce.”

But he’s realistic about the short-term pain: AI is already making every worker more productive, and that productivity can mean fewer total headcount.

Next test: Salesforce reports earnings after the bell on Wednesday, February 25, 2026. Cramer says this print will show whether companies are already cutting software spend because of AI.

What Investors Must Do Right Now

Cramer’s bottom line — no fluff:

“There’s just too many things that can go wrong if we buy the wrong stocks. Let’s be more cautious. We have to be after what we saw today.”

Practical action plan

1. Open your portfolio. Look at every software, cybersecurity, and AI-adjacent holding.
2. Ask: Can I stomach another 15-25% drop without selling in panic?
3. If yes → consider adding to highest-quality names on this weakness.
4. If no → trim now. Cash is not a bad thing in a fragile market.

This is not the end of the AI bull market. It is proof the market is extremely sensitive to any negative narrative because everyone is so heavily positioned for endless upside.

One weekend note. Billions wiped out. That’s how fragile sentiment has become.

Jim Cramer Warns Before Salesforce Earnings Test

The AI revolution is still the biggest opportunity of our lifetimes. But the road has sharp turns.

Jim Cramer has seen every cycle since the 1980s. When he says “be more cautious,” smart money listens.

Review your positions today. Stay disciplined. The next 48 hours (especially Salesforce earnings) will tell us a lot.