Software stocks eye second day of pain

• European software stocks like SAP, RELX, Wolters Kluwer, and LSEG are seeing declines, with LSEG down nearly 5%.
• US software stocks including Salesforce, Adobe, ServiceNow, and Intuit are also lower in extended hours, though with smaller percentage swings than European counterparts.
• The market is grappling with whether AI will merely impact profit margins or 'wipe out' entire industries by replacing traditional software and services, challenging existing business models.

European and US software stocks are experiencing a second day of sell-off driven by fears of AI disruption. An update from AI startup Anthropic, unveiling a new AI tool for its Claude co-work agent designed to automate tasks in legal, marketing, and data analysis, has triggered concerns about the sector's growth model and potential industry-wide disruption.