Shares of its partners, including LSEG, FactSet, Salesforce’s Slack and DocuSign, rose between 0.4% and 5.3%.The S&P 500 software & services index also rose 1.4% and the iShares Expanded Tech-Software Sector ETF rose 2.4%.
The software index hit a 10-month low on Monday after Citrini Research laid out a 2028 scenario in which unemployment would rise to 10.2%, driven by layoffs as AI quickly wipes out software and delivery applications.
“Software stocks and IGV in particular are just massively oversold. So any incremental news we get about more disruption is like we’re getting to a point where how much is already priced in,” said Dennis Dick, chief market strategist at Stock Trader Network.
“Some of this disruption is not yet imminent and much of it is likely to be years away. The market is telling us that now.” A weeklong sell-off earlier this month wiped out about $1 trillion in market value on Wall Street, what analysts called “Software mageddon,” and damaged sectors ranging from software to logistics companies on both sides of the Atlantic and India.
Anthropic said Monday that its Claude Code tool could be used to modernize a programming language running on IBM systems, which would result in the biggest daily drop in the old company’s stock in more than 25 years. IBM shares rose 3.5% on Tuesday.
Tax preparation software Intuit gained 2.8% and AI solutions provider Intapp climbed 7.1% after the companies announced separate partnerships with Anthropic on Tuesday.
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