Software Stocks Slide for Second Day

Summary

Software stocks extended losses after Anthropic released a new AI automation tool, with roughly $2 trillion wiped from the Goldman Sachs software index since its highs. The selloff spread into hardware names and European markets, though Microsoft rebounded slightly. Carmen Reinicke said the move resembles a washout and many software stocks are oversold, leading some investors to consider nibbling for a possible rebound.

• Anthropic's new AI automation tool accelerated the selloff in software stocks.
• The Goldman Sachs software index has lost about $2 trillion from its highs.
• Selling pressure spread to hardware names including NVIDIA and Google.
• Microsoft rose, rebounding from post-earnings weakness.
• Weakness also spread into European markets.
• Software stocks are in oversold territory and the move looks like a washout.
• Some investors are considering buying the dip and a rebound may be possible.
• Investors remain uncertain about catching a falling knife.