The great AI disruption: Why Indian IT is suddenly losing Wall Street’s confidence

February 4, 2026, delivered yet another doomy message to software services companies around the world, especially in India. As San Francisco-based artificial intelligence (AI) company Anthropic released new plugins for its Claude Cowork agent automating tasks across legal, sales, marketing, and data analysis, a massive selloff in software stocks got triggered.
Anthropic’s move has direct implications for software companies providing software as a service (Saas). So much so that analysts termed the event as ‘saaspocalypse’. Roughly USD285 billion was wiped out from software stocks globally, making it their worst single-day decline.