Anthropic AI Tool Triggers $285 Billion Stock Selloff

A groundbreaking new artificial intelligence automation tool unveiled by Anthropic PBC has sent a seismic shockwave through global financial markets, leading to a staggering $285 billion rout in stocks. The selloff predominantly impacted the software, financial services, and asset management sectors, as investors scrambled to exit positions with even a tangential exposure to the perceived threat posed by Anthropic's advanced AI capabilities.

The market turbulence began before the official opening of the US market on Tuesday. Traders and analysts immediately pointed to a newly released tool detailed on Anthropic's website as the primary catalyst for the steep declines observed in the shares of several prominent companies. Among the hardest hit were credit and marketing services firm Experian Plc, business and legal software maker RELX PLC, and the London Stock Exchange Group Plc.

According to reports from Bloomberg Intelligence, the broad-based selloff underscores a significant shift in investor sentiment, with technology stocks bearing the brunt of the downturn. While the exact functionalities of Anthropic's new tool remain under intense scrutiny, its release appears to have ignited fears of significant disruption across various industries reliant on data analysis, automation, and software services.

Sherwood.news reported that the selloff extended to major tech stocks, with most of the 'Mag 7' stocks experiencing declines, with the exception of Tesla. This rotation out of technology and into more defensive assets like energy, consumer staples, and utilities highlighted a growing investor anxiety. Energy stocks, in particular, saw gains as crude oil prices climbed amid escalating geopolitical tensions with Iran, providing a safe haven for some capital.

The impact on software stocks was particularly acute. A Goldman Sachs basket of US software stocks reportedly sank 6%, marking its most significant one-day decline since a tariff-fueled selloff in April of the previous year. Similarly, an index tracking financial services firms experienced a substantial tumble, falling nearly 7%. The broader Nasdaq 100 Index also felt the pressure, dipping as much as 2.4% at one point before paring some losses to close down 1.6%.

While the specific details of Anthropic's new AI automation tool are still emerging, its perceived ability to enhance automation and potentially displace human roles in areas like legal services, credit assessment, and marketing has clearly spooked the market. The swiftness and scale of the selloff suggest that investors are keenly aware of the disruptive potential of advanced AI and are acting preemptively to mitigate perceived risks.

The market's reaction also saw a rebound in gold and silver prices, which had recently experienced significant declines. Meanwhile, Bitcoin resumed its downward trend, falling to its lowest level since the day after the 2024 US presidential election, as investor appetite for riskier assets diminished.

The long-term implications of Anthropic's new AI tool remain to be seen, but its immediate impact has been a stark reminder of the transformative, and at times volatile, nature of artificial intelligence on the global economy and financial markets. Further analysis will be critical to understanding the precise mechanisms by which this tool is expected to reshape industries and the full extent of its economic ramifications.