Anthropic AI shock wipes billions off global software stocks

Good morning. Here's what happened overnight and what you need to know today.

1.

The SaaSpocalypse: Anthropic’s release of new legal automation tools for its Claude Cowork platform stunned global markets, sparking a sharp sell-off in legal, publishing and financial data stocks, as investors grew concerned the AI-powered services could undercut core business functions. The tools, announced on Anthropic’s website and GitHub, automate tasks such as contract review, NDA triage, compliance workflows, legal briefings and templated responses. Anthropic said the plugin is not intended to offer legal advice and that outputs should be reviewed by licensed attorneys. Nonetheless, billions were wiped off software, data and media firms. RELX, the parent of LexisNexis, dropped nearly 15%, erasing over GBP6 billion in value, while Thomson Reuters fell as much as 20%, before recovering slightly, Dutch software and publishing company Wolters Kluwer fell 12.7%, while analytics groups Gartner and S&P Global were about 20% and 10% lower respectively, with FactSet also lower. Experian and the London Stock Exchange Group closed 6.75% and 12.80% lower respectively. The iShares Expanded Tech-Software ETF was down about 4%, and a UBS basket of European stocks exposed to AI risk fell nearly 7%, according to Bloomberg. Anthropic also released open-source tools targeting other business functions such as customer support and sales. “We call it the ‘SaaSpocalypse,’ an apocalypse for software-as-a-service stocks,” Jeffrey Favuzza at the equity trading desk at Jefferies told Bloomberg. “Trading is very much ‘get me out’ style selling.” (Bloomberg)(FT)(WSJ)(The Guardian)

2.

Vol bounce: The deepening tech rout was wiping more than 2% from the Nasdaq in afternoon trading, accelerating a rotation out of growth stocks as volatility also surged across metals and crypto markets. Microsoft, Nvidia and Broadcom were each over 3% lower, while Oracle, Adobe and Intuit slid between 4% and 11%. Bitcoin dropped 6% to USD73,228, pushing Coinbase and Robinhood lower. Gold and silver jumped 6% and 10% in a fresh bout of extreme price swings. Private-credit managers exposed to software firms, including Blue Owl and Ares, slumped over 9%. Meanwhile, Novo Nordisk was over 14% lower after warning of a sharper-than-expected sales decline in 2026, citing US price cuts and patent expiries. Pfizer was also lower after trial results for its weight-loss drug drew mixed reaction. And Walmart became the first traditional retailer to reach a USD1 trillion market valuation with its shares rising 2.32% in afternoon trading. (Bloomberg)(WSJ)(Reuters)

3.

Shutdown end: Donald Trump broke a congressional impasse to end the partial US government shutdown after the House passed a spending bill he negotiated with Senate Democrats, overcoming resistance from both conservatives and progressives. The 217-214 vote sends the measure to Trump, who is expected to sign it later today. The bill funds most federal agencies through 30 September but only extends funding for the Department of Homeland Security to 13 February, leaving a short window for negotiations over immigration enforcement restrictions. Democrats are pushing for new limits on immigration agents, including a ban on masks, mandatory body cameras and warrants for arrests. Meanwhile, Bill and Hillary Clinton will give transcribed, filmed depositions to a House committee investigating ties to Jeffrey Epstein, prompting Republicans to cancel a planned criminal contempt vote. The Clintons’ lawyers have called for the proceedings to be made public. In the UK, police have launched a criminal investigation into Peter Mandelson over allegations he passed confidential government information to Jeffrey Epstein while serving as a minister. Separately, tensions with Iran escalated as the US shot down an Iranian drone near an aircraft carrier and blocked an attempt by Iranian forces to seize a US-flagged tanker. The incidents came just days before planned nuclear talks, which Tehran now wants to relocate and limit in scope. (Axios)(Reuters)(Bloomberg)(NYT)

4.

X-raided: The Paris prosecutor’s cybercrime unit raided the Paris offices of Elon Musk’s X, as part of its investigation into alleged misuses of the platform. The probe, which was launched in January 2025, is investigating content recommended by the X algorithm and has since been widened to also examine X’s AI chatbot, Grok. Prosecutors also summoned Musk and former X CEO Linda Yaccarino for questions in April as part of the investigation. A statement released by the prosecutor’s office said the summons of Musk and Yaccarino for voluntary interviews on 20 April 2026 have been sent in their “capacity as de facto and de jure managers of the X platform at the time of the events.” The prosecutor will also summon other X employees to speak. Police are examining allegations that the platform hosted and was used to distribute child sexual abuse material and posts denying crimes against humanity. (Paris Prosecutor's Office)(Capital Brief)(Bloomberg)

5.

Tasmania 2.0: What MONA’s David Walsh did for arts and culture in Tasmania, fintech veteran Brian Collins wants to do for startups in the state. While Tasmania’s economy is overwhelmingly powered by small businesses – 97% according to Business Tasmania’s 2023 report – Collins is betting the state can give rise to Australia’s next unicorn. Collins, co-founder of fintech fund Triple Bubble and deputy chair of Fintech Australia, has been appointed CEO of Enterprize Tasmania, the organisation responsible for driving the state’s innovation ecosystem. The not-for-profit runs a host of coworking spaces, workshops and startup events across the state, and has amassed over 220 members from over 100 companies. Collins acknowledges that the biggest challenge for Tasmania’s startup ecosystem is accessing capital. Tasmania has a small collection of angel investors, but there is no venture capital firm with an office in the state. “One of my main focus areas is making people aware of the great stories coming out of here and connecting them up with the VC community that I know really well”, he said. (Capital Brief)

6.

Kingdom moves: Disney named Josh D’Amaro as its next CEO, ending a years-long search and leadership uncertainty that followed Bob Iger’s return in 2022. D’Amaro is a 28-year company veteran who currently chairs Disney Experiences. He is 54 and will take over on 18 March following the company’s annual shareholder meeting. He will also join the company’s board. Iger, 74, will stay on as a senior adviser and board member until his retirement on 31 December. Dana Walden, 61, was promoted to president and Disney’s first-ever companywide chief creative officer, a newly created role reporting to D’Amaro. The appointment follows a CEO search that began nearly three years ago and comes as D’Amaro’s division, which includes theme parks, cruises and consumer products, generated nearly 60% of Disney’s profit last fiscal year. He is leading a USD60 billion, 10-year expansion of parks and cruise lines, including a new theme park in Abu Dhabi. Chairman James Gorman said the company’s board had considered over 100 candidates. “Josh is incredibly innovative,” Gorman said. “I’ve often said, what you look for in CEOs, it’s not just what they’ve done that’s important, but what they’re capable of doing.” Disney shares fell slightly after the announcement. Reaction was a lot worse at PayPal, which lost nearly 20% of its value after also naming a new CEO and slashing its earnings outlook. (Capital Brief)(Disney)(WSJ)

7.

C(Humm)y bidder: Credit Corp chief executive Thomas Beregi distanced his company from the escalating shareholder turmoil unfolding at takeover target Humm Group, but defended the fintech’s delayed disclosure of its $385 million buyout proposal. “Our offer was confidential so we didn’t expect it to be disclosed at all, until we’d at least reached the next stage, if that was due diligence, or even beyond that,” Beregi told Capital Brief in the wake of his company's half-year results. Veteran investor Anton Tagliaferro last week asked the Takeovers Panel to investigate the Humm board’s handling of Credit Corp’s 77 cents-per-share takeover offer, announced in December. Tagliaferro alleged that the board’s failure to disclose Credit Corp’s proposal for almost one month after its receipt undermined a competitive control process. The application echoed months of posturing from longtime activist shareholder Jeremy Raper, whose push for a board spill is set to go to a shareholder vote on 19 February. (Capital Brief)

8.

Correlation island: Despite the unrelenting lines at Sydney's Martin Place for gold from ABC Bullion, the precious metal is actually a correlated asset and oil is a better diversifier, according to Wilson Asset Management (WAM). Gold prices have surged about 67% over the past year on uncertainty, geopolitical and inflation fears. Investors have been using the asset class as a flight to safety and as part of their alternative bucket as, historically, it has been uncorrelated to stocks and bonds. But WAM portfolio strategist Damien Boey said gold is now correlated with other asset classes as the financial system becomes more complex. He believes markets are at “peak correlations”. “A reason to buy gold is that it is meant to be truly independent but all that’s happened is that gold prices have become more correlated with bonds,” he told Capital Brief. “We call it correlation island, internally, and there’s too many people that are jumping on correlation island right now." (Capital Brief)