Overview
- Software and services stocks logged a sixth straight decline on Wednesday, with the S&P 500 sector down another 0.73% after a nearly 4% drop the prior session.
- Since January 28, roughly $830 billion in market value has been wiped out as investors reassess how far generative AI could encroach on enterprise software.
- The latest slide followed Anthropic’s release of a Claude plug-in for legal and other workflows, highlighting large language models’ move into the application layer.
- Fears center on disruption to legacy models such as seat-based pricing and have driven rotation away from tech, with the Nasdaq down 1.5% as the Dow rose 0.5% and losses carrying into Asian markets.
- Pushback gathered from Nvidia CEO Jensen Huang and JPMorgan’s Mark Murphy against a near-term replacement narrative, even as JPMorgan’s Toby Ogg warned sentiment has turned sharply negative.