Wall Street is in a panic as traders dump software stocks due to fears of AI disrupting SaaS business models. The sector lost $830 billion in market value since January 28. Anxiety peaked after AI startup Anthropic launched a productivity tool for lawyers, triggering a sector-wide selloff.

The S&P North American Software Index suffered its steepest monthly decline since 2008, down 15% in January. Earnings season added to the sector’s woes, with only 67% of software companies beating revenue estimates, compared to 83% for the broader tech sector.

Investors are eyeing oversold conditions in the software index for potential opportunities. Some are betting on Microsoft to emerge as an AI winner. The stock is trading at a low valuation, attracting buyers who see long-term potential in the sector’s current downturn.

For those looking to capitalize on the tech rout, inverse ETFs like SARK, PSQ, QID, and SPDN offer potential gains. These funds provide opportunities to profit from the ongoing decline in software and tech stocks. Consider these ETFs for short-term plays in the current market environment.

Read more at Nasdaq: ETFs to Tackle the Anthropic-Led Software Stock Rout