AI Fears Spark Tech Selloff: Software Stocks Plummet Amid Concerns Over Business Models

Wall Street is concerned about the impact of AI on software companies, leading to a selloff in shares of big software-as-a-service players like Salesforce and Adobe. The software sector has seen its worst performance relative to the broader S&P 500 on record over the past six months. AI capabilities from companies like Anthropic have sparked worries that rapidly-advancing AI will pummel any company with services that include enterprise software.