Claude updates wipe billions off tech stocks

Anthropic's steady stream of new tools and updates for its Claude AI has weighed on tech shares this year. Claude's capabilities have wiped billions in market value from software and cybersecurity stocks, and the iShares Expanded Tech-Software Sector ETF is down 26% in 2026.

The sell-off accelerated after Anthropic added legal tools to its Claude Cowork agent on January 30, features aimed at tasks such as tracking compliance and managing legal documents. The ETF fell 11% in the four days after the announcement, with notable moves including Varonis Systems -25% and AppLovin -22%.

On February 20 Anthropic introduced a Claude Code feature that scans software for security issues, triggering losses across cybersecurity names. CrowdStrike slid 15%, Okta fell 12% and Zscaler dropped 11%, while an iShares cybersecurity and tech ETF fell about 6%.

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