Jack Pitcher

Have a great weekend.

We saw tech and financials weighing on the stock indexes, which extended some storylines we've seen come up throughout the month.

When it comes to tech stocks, people are trying to figure out how some of the rapid AI developments we're seeing are going to impact different business models.

Meanwhile, in financials, there's been a lot of concerns about private credit and whether there's maybe some more risk in the system than people realized.

This is a trade we've seen going on for a little over a year with some of the biggest software stocks, companies like Salesforce and Adobe.

They've been getting hit from concerns about how AI could impact their business long term.

But then in 2026, we've really seen an acceleration and a broadening of the number of software companies whose stock prices are getting hit.

It got kicked off with advancements in some of these AI models, especially the ones from Anthropic.

People are realizing that these models are getting very good at writing software code, and that's spooked some investors in software companies.

So there's a software index that S&P tracks.

It's across several of the bigger sectors in the S&P 500 and includes smaller companies too.

And just this year alone, we've seen $1.6 trillion in market value wiped off of software companies.

That index is down about 20%.

And it's particularly interesting because at the headline level, stock indexes this year have been close to flat.

They've been performing OK.

But we have this really sector specific steep sell off in software.

We've seen some CEOs come out and make statements on why they think some of the fears are off base, why their products are still going to be in demand, the proprietary data they have or other things that set them apart that others might not be able to replicate very easily.

We're also seeing software companies come out and announce deals with some of these AI providers like Anthropic.

They'll announce a deal that Anthropic is going to be part of their software going forward.

There's going to be an AI plug-in or tool.