Anthropic Fever. Another day, anther software selloff.

The Nasdaq Composite dropped 1.4%, while the S&P 500 fell 0.8%. The Dow Jones Industrial Average shed 167 points, or 0.3%.

Wall Street once again rushed to sell software stocks. This time around, the selloff began as traders fled legal software and data business. Morgan Stanley analyst Toni Kaplan triggered some of the worries in a note to clients:

The iShares Expanded Tech-Software Sector ETF sank 4.6% on the day.

A majority of stocks in the S&P 500 still closed higher, but the struggles in technology and communication services were a major drag on the market.

“Today’s tech selloff was sharp, but it’s just the latest episode in a trend that was evident toward the end of last year, and which picked up steam recently,” writes Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research and Strategy Team.

In that sense, a rotation away from some parts of tech is a “healthy development,” according to Skelly.

“Furthermore, it’s notable that rotation is also happening within tech itself, as investors flee software because of continued AI-disruption fears, and move toward other momentum winners, like memory,” Skelly writes. “As new leadership emerged in Q4 and continued since the calendar year flipped, the overall index remains near all-time highs, despite tech pain as the baton is passed.”

As long as Anthropic doesn’t launch a tool that specializes in sharp financial newsletters…

The Hot Stock: DaVita +21.2%
The Biggest Loser: Gartner -20.9%

Best Sector: Energy +3.3%
Worst Sector: Technology -2.2%

Walt Disney has picked its next chief executive.

The company said on Tuesday that Disney Experiences Chairman Josh D’Amaro would take the reins from Bob Iger after the firm’s annual meeting on March 18.

My Barron’s colleagues Nate Wolf and Angela Palumbo report that D’Amaro joined Disney in 1998. In his current role leading theme parks, resorts, and cruises, he has helmed Disney’s largest and highest-margin business segment. Nate and Angela write:

You can read more about Disney’s next chief here.

AbbVie, Aflac, Allstate, Alphabet, AvalonBay Communities, Arm Holdings, Boston Scientific, Bunge Global, Cencora, Group, Cognizant Technology Solutions, Crown Castle, Eli Lilly, Equifax, Essex Property Trust, Fortive, Fox, Globe Life, GE HealthCare Technologies, GSK, Johnson Controls International, Merck, MetLife, Novartis, Novo Nordisk, Old Dominion Freight Line, O’Reilly Automotive, Phillips 66, PTC, Qualcomm, Stanley Black & Decker, Steris, T. Rowe Price Group, Uber Technologies, UBS Group, and Yum! Brands report quarterly results tomorrow.

The Institute for Supply Management releases its Services Purchasing Managers’ Index for January.

• SpaceX Is Becoming a Trillion-Dollar AI Company

• JPMorgan CEO Jamie Dimon Stands to Reap Almost $250 Million From Option Grant

• AMD Beats Earnings. The Stock Is Still Falling.

• Walmart Hits $1 Trillion Market Value. Why Analysts Are Removing It From Their Top-Pick Lists.

• Kalshi and Polymarket Try a New Marketing Strategy: Free Groceries

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