Overview
- U.S. software and data‑services shares fell for a seventh straight session on Thursday, with the S&P 500 software and services index down about 3% and losses since Jan. 28 approaching $1 trillion.
- Alphabet’s plan to lift 2026 capital spending to roughly $175–$185 billion pressured megacaps, while Qualcomm slid on a weak forecast and AMD’s earlier 17% drop added to chip jitters.
- Selling concentrated in pricey AI winners continued as investors rotated toward value and cyclicals, with rising short interest in software and hedge funds cutting exposure.
- Global spillovers persisted as Asian benchmarks weakened and Indian IT stocks extended declines a day after their steepest fall in nearly six years.
- Market volatility stayed elevated with the VIX above 20, cryptocurrencies and precious metals slid, and concerns grew over private credit exposure to software borrowers.