The stock market buckled Tuesday as investors dumped shares of software makers after a new AI automation tool from Anthropic PBC heightened concerns that their core businesses are at risk of being displaced.

We call it the ‘SaaSpocalypse,’ an apocalypse for software-as-a-service stocks,” said Jeffrey Favuzza, who works on the equity trading desk at Jefferies. Selling pressure was evident across the sector with London Stock Exchange Group Plc,