AI Disruption Hits Hard: Software Bear Market, Mega-Cap Tops, and Credit Cracks

The week began with a classic relief/oversold bounce (Monday) driven by strong manufacturing data, but quickly gave way to intense, narrative-driven selling centered on AI disruption fears. Software stocks entered a bear market, with indiscriminate liquidation spilling from SaaS/legacy enterprise tools into semis, mega-caps, and eventually broader-based, capitulative selling spreading to cyclicals/defensives by Thursday. The…