AI fears pummel software stocks: Is it 'illogical' panic or a SaaS apocalypse?

Core Viewpoint - The release of new AI tools by Anthropic has raised concerns in the software sector, leading to a sell-off in software-as-a-service and data provider stocks [1][2]. Group 1: Market Reaction - The S&P 500 Software & Services Index, which includes 140 companies, fell over 4% on Thursday, marking an eight-session losing streak and a year-to-date decline of approximately 20% [2]. - Shares of major companies such as Thomson Reuters, Salesforce, and LegalZoom experienced significant declines during the sell-off, which also affected Asian IT firms like Tata Consultancy Services and Infosys [3]. Group 2: AI Tools Impact - Anthropic's new AI tools are designed to manage complex professional workflows, potentially undermining traditional software business models across various functions, including legal and technology research, customer relationship management, and analytics [2]. - There is a division among analysts and tech executives regarding the long-term impact of these AI tools on the software and data provider industries [3].