Tech drags down stocks as Anthropic’s AI tool threatens software companies |
The S&P 500 and Nasdaq sank as Anthropic’s new tools for Cowork, a computer assistant on mental steroids, triggered a selloff in software stocks. The Russell 2000 gained.
Of the BATMMAAN stocks only Tesla gained, and tech was the worst-performing sector. Energy was the best-performing sector as crude oil prices climbed amid escalating tensions with Iran. Investors switched to a defensive stance, sending consumer staples and utilities up over 1%, along with materials. Gold and silver prices rebounded after their recent historic wipeout. Bitcoin resumed its rout.
Stocks that moved higher: |
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The recently-released Claude Cowork plugins hit software companies Salesforce, DocuSign, Atlassian, Adobe, Workday, and ServiceNow especially hard.
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Anthropic’s legal plugins for Claude Cowork also prompted a rush out of legal software and publishing stocks, including RELX, Thomson Reuters, and Legalzoom.com
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Novo Nordisk plummeted as the pharmaceutical giant expects sales to decline by up to 13% in 2026 amid "intensifying competition.”
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Pfizer tumbled after the company’s management reaffirmed 2026 earnings guidance comes in short of Wall Street’s expectations.
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Nvidia slumped to fresh lows after CEO Jensen Huang affirmed the company’s plans to invest in OpenAI.
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Major after-hours block trades yesterday appeared to drive negative momentum in Spotify today.
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In a reversal of yesterday’s rebound, gaming stocks Nintendo, Unity Software, Take-Two Interactive, and Roblox resumed falling as investors weigh the potential impact of Google’s Project Genie.
- PayPal cratered after the digital payments company posted weaker-than-expected Q4 results and 2026 profit guidance, alongside a surprise leadership change.
- Rambus sank after a Q4 earnings miss and soft outlook weighed on investor sentiment.
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The crypto asset briefly broke below $74,000. Read more. |
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Elon Musk’s AI rocket company has a lot in common with his AI vehicle company. Read more. |
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(I-HWA CHENG/Getty Images) |
Despite posting Q4 big beat, AMD drops Advanced Micro Devices just released its fourth-quarter results. The #2 in GPUs reported: |
- Revenues of $10.27 billion (estimate: $9.65 billion, guidance for $9.3 billion to $9.9 billion)
- Adjusted earnings per share: $1.53 (estimate: $1.32)
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Dan Ives thinks Tesla will someday merge with SpaceX, too
All for one Musk company, one Musk company for all. -
Nintendo beats on Switch 2 console sales as the original Switch becomes the company’s bestselling console ever
The latest console is selling at a record pace, though rising memory chip prices and weaker margins kept overall results below forecasts.
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Disney names parks chief Josh D’Amaro as next CEO, effective next month
Disney’s board unanimously voted for D’Amaro to replace the outgoing (again) Bob Iger. -
Standard Chartered predicts solana will more than double in price by end of year
Despite its prediction of a higher end-of-year price, the firm says solana will underperform ethereum in 2026 and 2027. -
Bernstein analyst says bitcoin could bottom out at $60,000, but expects its “most consequential cycle” after that
“This is not a ‘bull market correction’ or ‘a dip.’ It is a full-bore, 2022-like, Leonardo-DiCaprio-in-The-Revenant-style crypto winter,” Bitwise CIO Matt Hougan wrote. -
Tesla and Google’s Waymo to Senate committee: fix self-driving laws or China will win
The two competitors want the same thing.
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