US EditionGlobal software stocks hit by Anthropic wake-up call on AI disruption
Anthropic’s new AI plug-ins automate key professional tasks, triggering a global sell-off that erased over 7% from Indian IT stocks alone, signaling market fears of AI disruption.
- On Feb 3, a sell-off among US and European data, professional services, and software firms deepened as traders flagged Anthropic's Cowork updates as the trigger.
- Anthropic launched plug-ins on Jan 30 that give Claude Cowork models more agency to automate contract review, NDA triage and legal briefings, threatening billable-hour legal work.
- On Wednesday, market data show sharp sector moves, with Thomson Reuters slumping nearly 18% and RELX falling about 14%, while the S&P 500 ended down 0.8%.
- Investors rapidly repriced valuations after AI tools reduced staff needs, eroding software firms' visibility premium, while analysts warned contagion could affect hyperscalers and a $200 million Pentagon contract for Anthropic.
- Analysts including Morgan Stanley say the move intensifies competition as the legal‑AI market already hosts well‑funded startups like Harvey AI and Legora, which could pressure law firms and the billable‑hour hiring model.
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53 Articles
The brutal monthslong wipeout in software stocks, in 3 charts
ANGELA WEISS / AFP via Getty ImagesNew tools from Anthropic tanked software stocks on Tuesday, with weakness continuing on Wednesday.Software stocks have wobbled for months, and the sector officially entered a bear market last week.These three charts illustrate the steep declines for software stocks in the last year.Software stocks are taking it on the chin again on Wednesday.The iShares Expanded Tech-Software Sector ETF was down another 2% as t…
U.S. software stocks hit by Anthropic wake-up call on AI disruption
U.S. software stocks extended their slide on Wednesday, driven by fears of disruption caused by artificial intelligence, with some analysts warning of more volatility as investors assess whether the challenge is existential for the sector.
UPDATE 1-Global Software Stocks Hit by Anthropic Wake-up Call on AI ...
Software companies have been overflying the stock market for years. Now AI is threatening their business model.
US stock futures point to flat start for Wall Street after Anthropic AI-led tech selloff
The latest selloff in tech stocks was sparked by Anthropic after it said it was launching a new artificial intelligence (AI) tool servicing legal work, threatening software firms.
AI fears spark brutal selloff in legal, data and software stocks
Anthropic introduced plug-ins for Claude Cowork agent that could automate tasks across legal, sales, marketing, and data analysis. The latest launch has sparked concerns about a looming AI-fuelled disruption in the data and professional services industry.
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