Core Viewpoint - The introduction of a new AI automation tool by Anthropic has triggered a significant sell-off in software stocks, leading to a substantial decline in the Goldman Sachs software index, with approximately $2 trillion wiped off since its peak [1]. Group 1: Market Reaction - The sell-off in software stocks has been extensive and is now affecting hardware stocks as well, with notable declines in companies like NVIDIA and Google, while Microsoft has shown a slight rebound [3]. - The negative sentiment surrounding software stocks has become a global phenomenon, indicating a broad market reaction to the current state of the software industry [2]. Group 2: Investor Sentiment - Some investors are beginning to consider this sell-off as a potential buying opportunity, suggesting that a rally could occur if software stocks decline too much, as many are currently in oversold territory [4]. - There is a growing discussion among investors about whether it is wise to attempt to "catch a falling knife" in the current market environment [4].

New York-listed shares of leading Indian information technology giants Infosys Ltd. and Wipro Ltd. fell over 5% after Anthropic released a new AI automation tool that investors worry could eat into much of their core businesses.Anthropic on Tuesday released new AI automation tool and this has created fear that it could eat into the core businesses of data & information services firms. Anthropic included a legal tool on its website that it says it can automate work like contract reviewing and legal briefings ...