Why Are Tech Stocks Falling Today? The “Anthropic Shock” and AI Bubble Fears Explained

Wall Street closed sharply lower yesterday, with Nasdaq sinking 2% as a technology selloff and increasing concerns over AI disruption rattled investor confidence ahead of crucial inflation data.

The high-flying technology sector is facing a brutal “reality check” this Friday, February 13. While 2025 was defined by the gold rush for AI infrastructure, 2026 has begun with a sharp pivot toward “sentiment contagion.” The primary reason tech stocks are falling today is a fundamental shift in how investors view Artificial Intelligence.

We have moved from the “assistant” phase, where AI helps workers, to the “replacement” phase, where AI tools are actively cannibalizing the revenue of established tech giants.

The carnage was accelerated by Cisco Systems, which plunged 12.3% after issuing a cautious outlook on margins, dragging down megacaps like Nvidia, Apple, and Amazon in its wake. For the first time in years, the “buy the dip” mentality has been replaced by a “sell first, ask questions later” approach as the S&P 500 software index slides into a technical bear market.

The Anthropic Shock: Why Anthropic’s Claude Cowork sparked $300 billion tech market sell-off this month.

The “spark” for this week’s bloodbath was the release of Claude Cowork by Anthropic. Unlike previous AI chatbots, this tool independently executes complex workflows, from legal research to refactoring production-grade code, without needing human oversight or traditional software licenses.

According to market data from Economic Times, this launch sent shockwaves through the industry:

• SaaS Redundancy: Companies like Salesforce (-6.8%) and Adobe (-7.3%) are under fire as investors question the viability of “seat-based” pricing models if one AI agent can do the work of ten humans.
• IT Services Reset: Indian IT giants like Infosys and TCS saw steep declines (up to 8% in ADRs) because their business models rely on billable hours for the very tasks Claude Cowork now automates.
• Data Disruption: Even professional service firms like Thomson Reuters and RELX have seen their “moats” challenged as AI proves it can generate bespoke legal and financial databases at a fraction of the cost.

Is the AI Bubble Bursting? Massive Capex and Rate Hike Fears

Beyond the “Anthropic Shock,” tech valuations are being crushed by the sheer weight of their own spending. The “Magnificent Seven” hyperscalers, including Microsoft, Meta, and Alphabet, are on track to funnel a staggering $650 billion to $660 billion into AI capex this year. Amazon alone shocked the market with a $200 billion capex guide, leading to its worst slide in over a year as analysts question when these massive investments will actually turn a profit.

Adding fuel to the fire is the Wednesday US labor data, which showed 130,000 jobs added in January. While a strong economy sounds good, it has effectively killed hopes for a March rate cut. With Treasury yields rising, the “long-duration” growth stocks in the Nasdaq are seeing their future cash flows discounted, making current premium valuations look increasingly unsustainable.

Conclusion: Tech Selloff Sparks Investor Move Into Defensive Sectors

What we are witnessing is not a total market collapse, but a violent sector rotation. As tech tumbles, investors are fleeing to “defensive” havens like utilities, consumer staples, and even Walmart. Until the “Big Tech” hyperscalers can prove that their $650 billion spending spree is generating real return on investment (ROI), the Nasdaq is likely to remain in a volatile correction phase.

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