Tech Giants Tumble as Investors Dump Shares in Unison

Jakarta, CNBC Indonesia - Shares in US software companies plunged during Thursday’s trading (9/4) as concerns over the impact of artificial intelligence (AI) once again haunted the market. The trigger was an update to Anthropic’s AI model, deemed potentially disruptive to the software industry. Investors have been offloading shares in this sector throughout the year. The primary fear stems from AI’s increasingly advanced capabilities, which could automate many human jobs and pose a threat to the business models of traditional software companies. This pressure is evident in the performance of the S&P 500 Software and Services index, which has dropped 25.5% since the beginning of the year, including a 2.6% decline on Thursday. Previously, optimism over a US-Iran ceasefire had eased market concerns. However, the fragile situation has led investors to refocus on technology sector risks. “We’re once again worried about specific issues in the software sector stemming from AI and the re-emergence of private credit concerns,” said Steve Sosnick, chief market strategist at Interactive Brokers, quoted from Reuters on Friday (10/4/2026). Concerns escalated after Anthropic launched its latest AI model, named Claude Mythos. The model is said to be extremely powerful but was not released widely due to fears it could reveal long-hidden cybersecurity vulnerabilities. Only around 40 tech giants, including Microsoft and Google, gained early access to the model. “If Mythos is that powerful and uncovers vulnerabilities that have existed for years, it shows two things: the weakness of current software and that AI is still making extraordinary progress compared to legacy software companies,” said Michael O’Rourke, chief market strategist at JonesTrading. The pressure was immediately visible in cybersecurity company shares. Cloudflare, Okta, CrowdStrike, and SentinelOne each fell between 4.9% and 6.5%. Zscaler even became one of the biggest decliners in the S&P 500 after dropping 8.8%. The decline followed BTIG downgrading its recommendation on the stock to “neutral” from “buy” due to concerns over demand and rising competition. Shares in other software companies were also hit hard. Atlassian, Workday, Adobe, Salesforce, and Intuit recorded drops between 3.7% and 6.8%. The pressure was not limited to the stock market. Concerns also spilled over into the private credit sector, as investors began reassessing loans to technology companies amid growth uncertainties. Carlyle Group shares fell 1.5% after the company’s flagship private credit fund faced a wave of withdrawals. Negative sentiment also spread to Europe. Shares in SAP Global, Capgemini, and Temenos weakened between 3% and 7%.