Overview
- Losses spread from Europe and North America to Asia and India, with Japan’s software names sliding and India’s Nifty IT down about 6% as TCS and Infosys fell roughly 5.8% to 6.2%.
- Legal and data players led declines, with RELX off roughly 14%–17%, Wolters Kluwer down about 13%, Thomson Reuters dropping 16%–19%, and LegalZoom sliding close to 20% in Tuesday trading.
- Anthropic released Claude Cowork plugins that automate legal workflows such as contract review, NDA triage, compliance checks and brief drafting, and the company emphasized the tool does not provide legal advice and outputs should be reviewed by licensed attorneys.
- Traders and analysts cited the legal plugin as a catalyst for a broad repricing that erased roughly $285 billion from software-related stocks in one session, while two SPDR funds tied to software and data shed about US$300.6 billion in market value, according to published estimates.
- Nvidia CEO Jensen Huang dismissed the idea that AI will replace software tools as illogical, even as analysts warned valuations could face ongoing pressure until companies demonstrate defensible AI monetisation and pricing power.