Investors fear AI advancements may disrupt S&P 500 business models as traditional software pricing and services face threats. Analysts note a “wrecking ball” effect across industries dubbed the AI Scare Trade. Software stocks like Salesforce, Adobe, and ServiceNow have plummeted, signaling the impact of AI on pricing and subscriptions.

Enterprise software faces the first cracks from AI tools like Anthropic, triggering concerns about data analytics and research relevance. Salesforce and Adobe stocks have dropped significantly this year due to fears of eroding pricing power. Workday’s revenue forecast miss and CEO’s attempt to dispel AI disruption only worsen the sector’s decline.

Cybersecurity firms like CrowdStrike, Zscaler, and Cloudflare take a hit after Anthropic announces a new security tool, raising worries about AI’s disruptive impact. The market slides further as concerns over AI disruption spread through various industries, affecting stock values across sectors.

Real estate, wealth management, and credit rating firms face pressure as AI tools threaten traditional practices. Companies like Charles Schwab, CBRE Group, and Moody’s experience stock declines amid fears of AI streamlining processes and reducing demand for services. JPMorgan CEO remains optimistic about AI benefits for the bank.

Freight brokers and transportation intermediaries suffer losses after a tool promises to scale freight volumes without more staff. Companies like C.H. Robinson and Universal Logistics recover from recent losses. The AI trade scare expands beyond software stocks, raising questions about the resilience of diverse industries to AI disruptions.

Read more at Yahoo Finance: 5 industries that have gotten rocked by the AI ‘scare trade’ defining markets this year