US Software Stocks, Infosys, Wipro ADRs Plummet Up to 25% Overnight: AI Fears Blamed

• US software stocks like Thomson Reuters, CS Disco, Legalzoom.com, and Gartner Inc. plunged up to 25% on Wall Street.
• Indian IT giants Infosys and Wipro's American Depository Receipts (ADRs) also fell up to 7% in overnight trade.
• The sell-off is attributed to AI-related fears, specifically after Anthropic released a productivity tool for lawyers, threatening existing business models.
• The S&P North American Software index is on a three-week losing streak, declining 15% in January, its biggest monthly fall since October 2008.
• Brokerage firms like Jefferies are calling it the "SaaSpocalypse," with concerns spilling over to Private Equity firms reducing software exposure.

Why It Matters: AI fears are driving a significant sell-off in US and Indian software stocks, leading to a "SaaSpocalypse."