U.S. Software Sector "SaaSpocalypse": AI Agent Fears Trigger $300B Selloff **The Catalyst: Anthropic's "Agentic" Shift** U.S. software stocks have entered a steep correction following Anthropic’s release of its new **Claude Cowork** platform, specifically the "Legal Plugin." Unlike previous chatbots, this tool is designed to execute end-to-end workflows—automating contract review, NDA triage, and compliance tasks. This move signals a shift from AI as a "copilot" to a direct substitute for seat-based software applications. **Market Impact: A Sea of Red** The release triggered a massive rout, wiping out an estimated **$285–$300 billion** in market value across the sector in just 24 hours. * **Sector Indices:** The iShares Expanded Tech-Software Sector ETF (IGV) plunged **4.6%**, its worst day in months. * **Legal & Data Casualties:** Companies with high exposure to white-collar workflows took the hardest hit. * **LegalZoom:** Crashed ~20% * **Gartner:** Plunged 21% * **London Stock Exchange Group (LSEG):** Dropped ~13% (worst day in 5 years) * **Thomson Reuters & RELX:** Slid nearly 10-15% **The Core Fear: "Existential" Threat** Investors are repricing the software sector based on a new narrative: **Displacement**. Analysts at firms like Jefferies and Goldman Sachs warn that "agentic AI" threatens the traditional SaaS business model. If an AI agent can perform the work of junior staff, the demand for "per-seat" software licenses—the revenue engine for these companies—could collapse. **Contrarian Voice** Amid the panic, Nvidia CEO Jensen Huang dismissed the selloff as "illogical." Speaking at a conference on Feb 4, he argued that AI will *consume* software tools rather than replace them, stating, "If you were a human or robot... would you use tools or reinvent tools?" **Outlook** Volatility is expected to persist. The market is currently acting on a "sell first, ask questions later" mentality, viewing any company relying on human-heavy workflows (legal, coding, finance) as vulnerable to immediate disruption. *** [Software Stocks Sink as Anthropic Release Sparks Panic](https://www.youtube.com/shorts/5Qr45Whpr58?vl=id) This short video clip highlights the sharp market reaction and specific stock declines following Anthropic's announcement, reinforcing the scale of the "SaaSpocalypse." http://googleusercontent.com/youtube_content/0