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Yesterday’s software sell-off marked “a dramatic acceleration” of the recent trend, says market strategist Jim Reid of Deutsche Bank, adding:
It means the 9 worst-performing companies in the S&P 500 YTD are all in the software and related services sectors, having now seen declines of 25% or more.
While the question over the end-winners from AI is unlikely to be answered in 2026, recent months have seen a clear shift in markets from AI euphoria towards more differentiation between companies, and growing concern about its disruption to existing business models.
