Tech Stocks Plummet Amid Fears Over Anthropic's AI Disruption

Market Update: Tech Stocks Bleed as AI Concerns Spread

In a reversal of the positive momentum established in the second half of 2025, US equity markets have lost steam in February, with many tech stocks experiencing heavy losses on Wall Street. The emergence of advanced AI tools, particularly from startups like Anthropic's Claude Code, has led investors to worry about the potential disruption of traditional software business models.

This has triggered a widespread sell-off not only in the US but also across key global markets, including India, erasing billions of dollars in investments and casting a cloud over the outlook for tech companies. Fears have expanded to include potential impacts on other sectors such as financial services, transportation, and logistics.

Market Performance

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• The Dow Jones closed lower by nearly 822 points (1.7%) on Monday.
• The tech-heavy Nasdaq Composite declined 1.1%.
• The S&P 500 shed 1% and slipped into the red for the year.

Stock Performance

• IBM shares have fallen 24.60% so far in 2026, erasing the majority of its 2025 gains.
• CrowdStrike Holdings shares have fallen 25% so far in 2026.
• Microsoft shares have fallen 20.50% on a year-to-date basis.
• Amazon and Tesla shares have each dropped 11%.
• Advanced Micro Devices has corrected 17% in under two months.
• Qualcomm has shed 18% during the same period.
• ServiceNow and Salesforce shares have crashed 34% and 32.75%, respectively, in less than two months of 2026.

Sector Performance

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• Software stocks have been hit hard, with private credit stocks, including Blue Owl and TPG, declining 30% and 34% amid fears that AI will disrupt the software industry.
• PayPal, Mastercard, American Express, and Visa shares are down 24%, 13.31%, 13%, and 12%, respectively, in 2026.