Software stocks shed about $830bn in six sessions as AI disruption fears hit Nasdaq

SPX NVIDIA NVDA

Software and services stocks fell sharply from January 28 to February 4, 2026, losing about $830 billion of market value in six sessions. The S&P 500 software and services index dropped nearly 13% over that stretch and was 26% below its October peak. Investors blamed a new legal plug-in for Anthropic's Claude agent, which they read as large language models moving into enterprise software; the Nasdaq Composite fell 1.51% on February 4.

Software and services losses: about $830bn since January 28
S&P 500 software and services index: down nearly 13% over six sessions
Nasdaq Composite: down 1.51% on February 4; Nvidia down 3.4%

SPX around the story · hourly24 h reaction ▼ 0.84%

Moves this explains

ETH−14.98%Feb 4 · Fell 15% to about $1,825 in a broad risk-off selloff, the largest drop in this set. Bitcoin and ether fell more than 7% over 24 hours, the Fear and Greed Index dropped to 11, and over $800 million of leveraged positions were liquidated.MSFT−4.50%Feb 4 · A broad risk-off day in our data: the S&P 500 fell 2.2%, bitcoin 14.0%, ether 15.0%, Tesla 4.4%, Nvidia 3.9%, and Amazon 15.2% on its 2026 capex plan. Software stocks had been selling off for days on fears that AI would disrupt their businesses, and Microsoft fell 4.5% with them. A Stifel downgrade was also reported the same day.NVDA−3.92%Feb 4 · Fell 3.92% in a broad selloff: S&P 500 -2.17%, bitcoin -14.03%, ether -14.98%. The same day Amazon fell 15.21% after its fourth-quarter report with about $200B of planned 2026 capex, and software stocks had shed about $830bn over the prior six sessions on AI-disruption fears.SPX−2.17%Feb 4 · Fell 2.2% in a broad risk-off day: Microsoft -4.5%, Tesla -4.4%, NVIDIA -3.9%, Bitcoin -14.0%, Ethereum -15.0%; gold -6.2%. It came during the software selloff on AI-disruption fears that a Feb 4 report covers, but no S&P 500 close for the day is reported, so the link is contextual.COIN−6.73%Feb 3 · Coinbase fell 6.7% in a broad tech and AI sell-off: PLTR -10.7%, AMD -8.0%, HOOD -7.3%, MU -6.3%, QQQ -1.5%, with bitcoin -3.4% and ether -3.8%. The day fell within the software-stock sell-off over AI disruption fears, which hit AI-exposed names across the Nasdaq.PLTR−10.69%Feb 3 · Palantir fell 10.69% to $139.51 in a broad tech selloff: AMD -8.00% after weak Q1 guidance, MU -6.33%, GOOGL -4.24%, ORCL -4.18%, COIN -6.73% and QQQ -1.53%. Coverage ties the day to the software selloff, in which software stocks shed about $830bn in six sessions, and to AMD's guidance.QQQ−1.53%Feb 3 · QQQ fell 1.53% while software and high-beta names were hit hardest: PLTR -10.69%, HOOD -7.30%, COIN -6.73%, AMD -8.00%. Coverage ties the week's drawdown to fears that AI disrupts software business models, with about $830bn of software and services stock value lost in six sessions.

Source

Pakistan Today

Feb 4, 2026

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