US stocks fell: software sell-off, AI disruption, 15% global tariff
US stocks fell as a software sell-off reignited and investors reassessed how artificial intelligence could reshape profits across the enterprise stack. Stocks declined while bonds were bid on renewed anxiety over AI’s impact on company earnings alongside lingering tariff uncertainty, according to Bloomberg.
A proposed 15% global tariff on all goods for 150 days remains a market overhang, as reported by TheStreet. Traders also continued to digest policy signals and related fallout that have pressured U.S. software names and private capital groups, as reported by the Financial Times.
Why it matters: earnings uncertainty, risk-off flows, valuation repricing
Earnings uncertainty is elevated because AI disruption may compress pricing power for some software categories, redirect budgets toward infrastructure and model spend, or alter cost structures. Near-term results could be scrutinized less for quarterly beats and more for signs that customer adoption, retention, and monetization strategies can adapt to generative AI.
Risk-off flows have strengthened as investors weigh policy and technology shocks together, typically widening equity risk premia. Tariff-related cost pass-through risks may squeeze margins for companies with global supply chains, and AI-related spending shifts could pressure revenue mix for incumbents lacking clear product roadmaps.
Valuation repricing is ongoing as the market discounts a broader range of long-term outcomes. The debate spans the full AI stack, from chipmakers such as Nvidia to enterprise applications, pushing investors to reassess terminal growth, competitive moats, and the pace of software monetization tied to AI features.
Immediate impact: indices lower, bonds bid, software multiples compress
Major U.S. indices traded lower while Treasury demand firmed, consistent with a defensive tilt tied to AI and tariff headlines. Sector pain remained most acute across U.S. software and services, with activity spilling into adjacent areas previously described as vulnerable to automation; earlier reports indicate selling also reached some private capital names.
At the time of this writing, Salesforce (CRM) was quoted around $174.69, down roughly 5.65% intraday as analysts cut price targets ahead of earnings and on concerns over AI disruption, while the broader tech sector weakened; this contextual market snapshot is based on data from Yahoo Finance. Intraday figures are subject to change and may reflect delayed feeds.
Software valuation multiples have compressed meaningfully: the group’s forward P/E fell from roughly 35x in late 2025 to about 20x, levels not seen since 2014, according to Goldman Sachs. This repricing reflects investors discounting lower long-term growth certainty even without immediate revenue collapse.
Institutional views: Goldman Sachs vs JPMorgan on AI risk
Institutional perspectives are split between treating the sell-off as a rational repricing of disruption risk and seeing it as an overreaction that underestimates software’s resilience. Analysts emphasize that quarterly results may not be sufficient to settle long-duration questions about business models in transition.
“ The uncertainty around the eventual impact of AI means near-term earnings results will be important signals of business resilience, but in many cases insufficient to disprove the long-term downside risk,” said Ben Snider, chief U.S. equity strategist.
On the other side of the debate, “fears that AI plug-ins or tools will replace large enterprise software vendors feel like an illogical leap,” said Mark Murphy, head of U.S. enterprise software research.
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