US Software Stocks Suffer $1 Trillion Loss Amid AI Disruption Fears

US software and data services stocks have fallen for a seventh straight session, losing $1 trillion in market value since January 28. The S&P 500 software and services index dropped 4.6%, with big tech names like ServiceNow, Salesforce, and Microsoft also taking a hit. Investors are concerned about the impact of AI tools on the sector, leading to a broader rotation out of tech and into value-oriented sectors. Short interest in mid- to large-cap software companies has been rising, and calling the bottom during the selloff is challenging.