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Feb 7, 2026 4:20 AM

Dow Jones Tops 50,000 For First Time Ever, Decoupling From Tech: This Week On Wall Street

Wall Street saw a dramatic rotation this week, as investors fled once-reliable software stocks in the wake of mounting fears that generative artificial intelligence could permanently erode demand for traditional digital services.

Software stocks, tracked by the iShares Tech-Expanded Software Sector ETF (NYSE:IGV), tumbled nearly 20% over the week, marking one of the fund’s worst weekly performances since the 2022 tech rout.

Names that once defined growth and innovation are now under pressure, as emerging AI platforms such as Anthropic's Claude Cowork and Google's Genie 3 threatened to cannibalize the very sectors they helped build.

Palantir Technologies Inc. (NASDAQ:PLTR), the poster-child of the AI-led software rally, fell for the fourth straight week. Other software giants such as ServiceNow Inc. (NASDAQ:NOW), Oracle Corp. (NYSE:ORCL) and Intuit Inc. (NASDAQ:INTU) all posted ...