"The first week of February was a doozy in markets. Anthropic, one of the more outspoken companies in the artificial intelligence space, rattled stocks with the seeming superpowers of its Claude chatbot, prompting a selloff across the software sector with potential obsolescence suddenly knocking at the door. Marta Norton, chief investment strategist at Empower Investments, told Axios that it reminded her of the displacement of BlackBerry when iPhones redefined what a smartphone looked and felt like."
"Bloomberg calculated that roughly $1 trillion of market value evaporated within a week. Still, one of Wall Street's top voices sees a very different reality for the economy as a whole: a boom. As investors fret over volatility in the tech sector and the potential for an AI bubble to burst, Torsten Slok, chief economist at Apollo, urged investors to look past the noise."
Rapid AI advancements triggered a deep software-sector selloff after Anthropic's Claude showcased striking capabilities, prompting comparisons to BlackBerry's displacement and wiping roughly $1 trillion of market value in a week. Despite concentrated tech volatility, broader economic indicators point toward resilience. Torsten Slok, chief economist at Apollo, predicts software problems will not become a macro issue because the U.S. economy is poised to accelerate. He identifies three tailwinds driving near-term growth; the first is that data-center financing and related infrastructure spending are largely committed through 2026, locking in substantial capital expenditure that will underpin economic activity.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]