$285 Billion Wiped Out After Anthropic AI Tool Sparks Selloff In U.S. Software And Financial Stocks

A new artificial intelligence automation tool released by Anthropic triggered a broad selloff across U.S. software, legal data and financial services companies on Tuesday, wiping out an estimated $285 billion in market value.
The decline began before market open and intensified during the session as investors reduced exposure to firms seen as vulnerable to AI-led automation.

Software And Financial Stocks Lead Losses

A Goldman Sachs basket of U.S. software stocks fell 6%, marking its steepest one-day drop since April.
An index of financial services firms declined nearly 7%.

The Nasdaq 100 dropped as much as 2.4% intraday before trimming losses to around 1.6%. The iShares Expanded Tech-Software Sector ETF fell 4.6%, extending its losing streak to six sessions. The ETF is already down about 15% this year, its weakest monthly performance since 2008.

Stocks Under Pressure

Shares linked to data, research and legal information services saw heavy selling. Declines were recorded in:

• Experian
• RELX
• London Stock Exchange Group
• Thomson Reuters
• LegalZoom
• Alternative asset managers and credit-focused firms also fell sharply.

Among them:

• Blue Owl Capital
• Ares Management
• KKR & Co.
• TPG Inc.
• Apollo Global Management
• Blackstone

Several of these stocks fell between 8% and 13% during the session.

What Triggered The Selloff

The reaction followed the launch of a legal-focused automation tool by Anthropic. The product is designed to assist with tasks such as:

• contract review
• legal drafting
• document analysis
• research support

The tool signals that generative AI models may increasingly automate knowledge and workflow-heavy functions that were traditionally handled by software vendors and data service providers. Market participants interpreted this as a potential threat to subscription-based business models across legal, analytics and information services.

Investor Concerns Rise

Analysts said the development highlights rising competition within AI-enabled services.
Investors are now reassessing which companies could benefit from AI adoption and which could face margin pressure or demand risks. Recent earnings data also show mixed performance. Only around 71% of software firms in the S&P 500 have beaten revenue estimates this season, compared with roughly 85% across the broader technology sector. The divergence has added to caution around software valuations.