AI Scare Trade
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5 industries that have gotten rocked by the AI 'scare trade' defining markets this year
Yahoo Finance· 2026-02-25 16:47
Group 1: AI Impact on Industries - Investors are increasingly concerned that rapid advancements in AI could significantly impact the business models of iconic S&P 500 companies, leading to a broader sell-off across various industries [1][2] - The phenomenon has been termed the "AI Scare Trade," with fears of job losses in middle-class, white-collar sectors due to automation [2] Group 2: Software Sector - The initial signs of market disruption appeared in the enterprise software sector, where concerns arose that AI tools from companies like Anthropic could diminish the need for traditional data analytics and research services [4] - Major software companies have seen significant stock declines, with Salesforce down nearly 30%, Adobe dropping 25%, and ServiceNow also declining by 30% year to date [5] - The Tech-Software Sector ETF remains down 26% year to date, despite Anthropic's announcement of new software partnerships [6] Group 3: Cybersecurity Sector - Cybersecurity firms have also been affected, particularly after Anthropic introduced a new security tool, leading to declines in shares of CrowdStrike, Zscaler, and Cloudflare [8]