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Wall Street has been skeptical about software stocks for a while, but sentiment has gone from bearish to doomsday lately with traders dumping shares of companies across the industry as fears about the destruction to be wrought by artificial intelligence pile up.“We call it the ‘SaaSpocalypse,’ an apocalypse for software-as-a-service stocks,” said Jeffrey Favuzza, who works on the equity trading desk at Jefferies. “Trading is very much ‘get me out’ style selling.”The anxiety was underscored Tuesday after AI startup Anthropic released a productivity tool for in-house lawyers, sending shares of legal software and publishing firms tumbling. Selling pressure was evident across the sector with London Stock Exchange Group Plc, which has a large data analytics business, falling as much as 10%, while Thomson Reuters Corp plunged as much as 17% in early trading. CS Disco Inc sank as much as 14%, and Legalzoom.com Inc declined 16%.Perceived risks to the software industry have been simmering for months, with the January release of the Claude Cowork tool from Anthropic supercharging disruption fears. Video-game stocks got caught up in the slide last week after Alphabet Inc began to roll out Project Genie, which can create immersive worlds with text or image prompts. All told, the S&P North American software index is on a three-week losing streak that pushed it to a 15% drop in January, its biggest monthly decline since October 2008.“I ask clients, ‘what’s your hold-your-nose level?’ and even with all the capitulation, I haven’t heard any conviction on where that is,” Favuzza said. “People are just selling everything and don’t care about the price.”The concerns are brewing in private equity as well, with firms including Arcmont Asset Management and Hayfin Capital Management hiring consultants to check their portfolios for businesses that could be vulnerable, according to people with knowledge of the matter. Apollo cut its direct lending funds’ software exposure almost by half in 2025, from about 20% at the start of the year.Among US public companies, so far this earnings season just 67% of software companies in the S&P 500 have beaten revenue expectations, according to data compiled by Bloomberg. That compares with 83% for the overall tech sector. While all software stocks have beaten earnings expectations, that’s mattered little in the face of concerns about long-term prospects.For example, Microsoft Corp reported solid earnings last week, but investors’ focus on slowing growth in cloud sales put fresh scrutiny on the amount it’s spending on AI, sending the stock tumbling 10% on Thursday. January was the worst month for Microsoft shares in more than a decade. Meanwhile, earnings reports from ServiceNow Inc and SAP SE gave investors additional reasons to be cautious about growth prospects for software companies.Microsoft fell 1.4% on Tuesday, on track for a fourth straight negative session.On the flipside, Palantir Technologies Inc gave a bullish revenue forecast when it reported earnings after the bell on Monday. It also posted fourth-quarter revenue growth of 70%, exceeding Wall Street estimates. Shares rose 8.5% on Tuesday.“The fear with AI is that there’s more competition, more pricing pressure, and that their competitive moats have gotten shallower, meaning they could be easier to replace with AI,” said Thomas Shipp, head of equity research at LPL Financial, which has $2.4tn in brokerage and advisory assets. “The range of outcomes for their growth has gotten wider, which means it’s harder to assign fair valuations or see what looks cheap.”Those AI-related fears led Piper Sandler to downgrade software firms Adobe Inc, Freshworks Inc and Vertex Inc on Monday. “Our concern is that the seat-compression and vibe coding narratives could set a ceiling on multiples,” analyst Billy Fitzsimmons wrote. Vibe coding refers to using AI to write software code.To be sure, some investing pros view the selloff in software stocks as an opportunity. The Sycomore Sustainable Tech fund, a European open-end fund that has beaten 99% of its peers over the past three years, bought Microsoft shares amid the downturn on the expectation that the company will eventually emerge as an AI winner.It doesn’t hurt that the software giant’s stock looks cheap at the moment, trading for 23 times estimated earnings, the lowest in about three years. And from a technical perspective, its 14-day relative strength index is in oversold levels. More broadly, the software index’s multiple is the lowest in years, and its RSI indicates it’s oversold.The software sector is “probably oversold enough for a bounce,” Jonathan Krinsky, BTIG’s chief market technician, wrote in a note to clients last week. However, he added, “it is going to take a long time to repair and build a new base,” and that “we have not been fans of software for a while given the deteriorating relative strength that really accelerated” in the fourth-quarter of last year.The central issue facing investors who want to buy software stocks is separating the AI winners from the losers. Clearly, some of these companies are going to thrive, meaning their stocks are effectively on sale after the recent rout. But it may be too early to determine who they are.“The draconian view is that software will be the next print media or department stores, in terms of their prospects,” said Favuzza at Jefferies. “That the pendulum has swung so far to the sell-everything side suggests there will be super-attractive opportunities that come out of this. However, we’re all waiting for an acceleration, and when I look out to 2026 or 2027 numbers, it is hard to see the upside. If Microsoft is struggling, imagine how bad it could be for companies more in the path of disruption, or without its dominant position.” 

Turkish stocks are poised for their best January in 29 years as the wave of optimism around emerging markets and cheap valuations lure foreign investors back into the market. The Borsa Istanbul 100 Index has climbed 19% so far in January in dollar terms, its best performance since 1997. Even after the rally, the shares trade at a steep valuation discount to other emerging-market stocks on a price-to-estimated earnings basis. Last year, Turkish assets were kept on the sidelines of a long-awaited rebound in emerging markets. The country’s stock market is now closing the gap, buoyed by a weaker dollar and a push by investors to diversify away from US assets. “Amid strong appetite for emerging markets, Turkish stocks are playing catch-up,” said Batuhan Ozsahin, chief executive officer at Ata Portfoy Yonetimi. “The dollar debasement trade is still continuing, and with force.” The country’s shares attracted $1.36bn of inflows from foreign investors since the start of December through January 16, according to the central bank data. The BlackRock Frontiers Investment Trust Plc counts Turkish stocks among its biggest holdings, moving to almost 10% from near-zero exposure a year ago. One of the biggest contributor’s to the index’s advance was state-run defence contractor Aselsan Elektronik Sanayi Ve Ticaret AS, which rose 34%. Other top gainers included Kiler Holding AS and oil refiner Tupras which climbed 67% and 32%, respectively. Burak Demircioglu, a director at Istanbul-based Yatirim Finansman, expects the rally to broaden in the months ahead. “There are still many laggards that could extend the gains on the gauge,” he said. Lower interest rates are another factor that supports the demand for Turkish shares. The country’s central bank cut its policy rate for the fifth straight month last week. “We’re in an easing cycle overall, and nearing critical levels for interest rates, where further rate cuts could at least start denting the appeal of alternative investments,” Demircioglu said. In the days ahead, traders will be keeping a close eye on company earnings reports for clues on whether the rally can extend. “Fourth-quarter earnings and 2026 outlooks will play an important role in setting the tone,” said Tunc Yildirim, managing director of Unlu Securities. 

SABIC sells assets across Europe and Americas worth $950mnShares fall over 5% following announcementSABIC is one the world's biggest petrochemicals companiesFirm has been restructuring and reviewing ‌portfolio to focus on core business Saudi Arabia's SABIC has agreed to sell its European petrochemical business ⁠and its Engineering Thermoplastics business in ⁠Europe and the Americas for a combined enterprise value of $950mn, as part of a restructuring during an industry slowdown. Shares in the chemicals company fell as much as 4.8% at 48.2 riyals ($12.85) per share in early trade in Riyadh on Thursday, touching the lowest level in nearly 17 years. The stock has lost 26.4% in the last ‌12 months.SABIC has agreed to divest its European petrochemical (EP) business, which includes manufacturing sites in the United Kingdom and Germany, to Munich-based ‍investment firm AEQUITA for an enterprise ⁠value of $500mn.It is also selling the ETP business in the Americas and Europe to German holding company Mutares at an enterprise value of $450mn. The business operates manufacturing sites in Canada, the US, Brazil and Spain.SABIC is restructuring as the chemicals industry faces weak demand, divesting low-return operations and focusing on core chemical operations.It is 70% owned by oil giant Aramco, which is cutting costs and selling assets as it balances capital expenditure with lower ​oil prices and shareholder payouts."These ‌transactions represent a continuation of our portfolio optimisation program, which started in 2022 and included ⁠previous actions, such ‍as the divestment of Functional Forms, Hadeed and Alba," CEO Abdulrahman al-Fageeh said in a statement.The company also said last year it was studying strategic options for its National Industrial Gases Company, including an initial public offering, as part of a broad review of ​its business.The divestments announced on Thursday are expected to improve its overall core profit margins and free cash flow generation, the firm said, adding it "is committed to ensuring a seamless separation" and minimize disruption to ongoing operations.Goldman Sachs advised SABIC on the EP transaction, while J.P. Morgan advised on the ETP deal. Lazard acted as independent financial advisor for both deals. 

A year-end rally in US stocks seemed like a lock a few weeks ago amid relentless demand for AI-linked shares, solid earnings and a history of seasonal strength. Now Wall Street isn’t so sure.The S&P 500 Index has gained 1.5% in December on average since 1945, trailing only November’s performance, data compiled by CFRA Research show. But with the US equities benchmark still on pace for a loss this month — even after Monday’s rally — the whole notion of seasonality is being called into question, especially with traders still jittery about artificial-intelligence valuations.Investors continue to show signs of wariness, with demand for hedges against losses in Big-Tech stocks near the highest since August 2024. And after three consecutive weeks of stock-market turbulence, the VIX Index is sitting above the 20 mark that typically signals mounting market stress.“Seasonality is always an investor’s friend, however it’s important to remember it’s not absolute,” said Dan Greenhaus, chief economist and strategist at Solus Alternative Asset Management LP.The S&P 500 rose 1.5% to 6,705.12 on Monday after Federal Reserve Governor Christopher Waller indicated support for an interest rate cut next month. The benchmark gauge is still down 2% this month and is on track for its first monthly drop since April. That compares with a long-term gain of 1.5% in November, per CFRA Research data.Ed Yardeni of eponymous firm Yardeni Research said the S&P 500 is unlikely to reach 7,000 by year-end, which would represent a roughly 4% gain from current levels, largely due to some profit-taking in AI-related stocks. At Roth Capital Markets, chief market technician JC O’Hara called for maintaining a cautious approach on stocks in a note Sunday.“Uncertainty on AI payoffs and upside rate risk will likely limit how much the market can rally into year-end,” said Dennis Debusschere, chief market strategist at 22V Research.While past performance overwhelmingly favours a year-end rally, investors are grappling with a murky backdrop marked by slowing economic growth, heavy spending on AI by American tech behemoths and division at the Fed about the pace of further rate cuts.Investors placed the odds of a cut at the December 9-10 policy meeting at about 70% on Monday after Waller advocated for easing next month. Still he said that a flood of delayed economic data to be released after the December gathering could make the January decision “a little trickier.”On the AI front, meanwhile, lofty valuations, circular financing deals, and sky-high expectations for growth have stoked skittishness around a potential bubble. The worries were highlighted last week when robust earnings from AI darling Nvidia Corp spurred big swings across equities rather than placating those concerns.Positioning data is also flashing mixed signals about what traders can expect in the remainder of 2025. A Deutsche Bank AG measure of equity exposure turned underweight last week for the first time since July, data compiled by the bank’s strategists including Parag Thatte show. But for mega-cap growth and technology shares, outperformance relative to the average stock is still at the top of its long-run trend channel despite the pullback, “leaving them vulnerable,” according to Thatte.For optimists, history skews in their favour against all of the nerves. Whenever the S&P 500 rose at least 10% from early January through September but declined in November — like currently — December followed with gains each and every time going back to 1950, according to data from JPMorgan Chase & Co’s trading desk.“We remain tactically bullish,” JPMorgan’s head of global market intelligence Andrew Tyler told clients in a November 24 note, citing resilient macroeconomic data, positive earnings growth, and a thawing trade war. “Additionally, historical seasonality stats also suggested a rebound.”

The Qatar Stock Exchange (QSE) index closed lower on Tuesday, declining by 90.03 points, or 0.83 percent, to reach 10,745.92 points. During the session, a total of 117,734,869 shares were traded, with a value of QAR 371,044,552.716, through 22,553 transactions across all sectors. Shares of 11 companies rose during the session, while 33 companies saw their stocks decline. 8 companies maintained their previous closing price. At the end of the trading session, the market capitalization stood at QAR 643,449,830,619.294, compared to QAR 650,556,894,582.019 in the previous session.

Kuwait Bourse closed trading on Tuesday as the All Share Index gained 18.51 points to reach 8,858.82 points, an increase of 0.21 percent. As many as 769.6 million shares valued at KWD 158 million (roughly USD 483 million) were traded via 36,887 transactions. The Main Market Index went down by 101.42 points to reach 8,478.29 points, down by 1.18 percent, through 517.2 million shares sold via 24,954 transactions valued at KWD 78.6 million (roughly USD 239.7 million). The Premier Market Index gained 49.39 points to reach 9,391.46 points, up by 0.53 percent, through 252.4 million shares sold via 11,933 transactions valued at KWD 79.4 million (roughly USD 242.17 million). Meanwhile, the bourse's Main 50 Index went down by 13.60 points to reach 8,853.77 points, down by 0.15 percent, through stock volume of 355.4 million shares done in 15,966 deals at a value of KWD 56.4 million (roughly USD 172 million).

The Qatar Stock Exchange (QSE) index closed higher on Thursday, rising by 35.84 points, or 0.33 percent, to reach 10,933.22 points. During the session, a total of 107,625,656 shares were traded, with a value of QR 261,660,077.585, across 18,518 transactions in all sectors. Shares of 27 companies rose during the session, while 18 companies saw their stocks decline. Six companies maintained their previous closing prices. At the end of the trading session, the market capitalization stood at QR 654,222,747,248.301, compared to QR 652,499,570,964.819 in the previous session.

European shares eased on Tuesday as heavyweight energy and healthcare stocks lost ground, while investors weighed the potential impact of a US government shutdown that could delay the release of the closely-watched monthly jobs data. The pan-European STOXX 600 (.STOXX), opened new tab slipped 0.2% to 554.7 points, though set for its third successive monthly gain and a more than 2% gain for the quarter. Heavyweight oil and gas stocks dipped 0.8%, tracking declining oil prices. France's TotalEnergies and the UK's BP fell more than 1% each. Healthcare stocks also shed 0.3%, with Denmark's Novo Nordisk and the UK's AstraZeneca down about 1% each. On the economic data front in Europe, the UK economy grew 0.3% in the second quarter, French preliminary inflation stood at 1.1% in September and German retail sales unexpectedly fell in August. Britain's ASOS slid 11.4%.

European shares nudged up on Thursday after the US Federal Reserve lowered borrowing costs for the first time since December, while shares of SIG plummeted after the Swiss-based company issued a profit warning. The pan-European STOXX 600 rose 0.5% to 553.49 points, in broad-based gains.In Denmark, Novo Nordisk rose 2.6%.SIG Group slid 20%.Britain's Next also lost 5.5%.

European stocks rose in early trading on Monday, supported by bank shares, as investors await a busy week of central bank meetings, including the Federal Reserve's (US central bank) meeting.The Stoxx 600 index rose 0.2 percent to 556.2 points, with the interest-sensitive banking sector leading gains, up 0.8 percent.Shares of French fuel retailer Rubis rose 6.7 percent, topping the Stoxx 600 index's gainers list. The company's value is estimated at approximately USD 3.5 billion.The French CAC 40 index rose 0.4 percent, with shares of local banks such as Societe Generale up 1.3 percent, while both BNP Paribas and Credit Agricole rose about 0.9 percent.

Meituan’s shares dropped the most since April after warning of losses this quarter from a price-based battle with Alibaba Group Holding Ltd and JD.com Inc, wiping out a combined $27bn in market value from the three Internet commerce leaders.China’s food delivery leader issued its dire prediction after reporting “irrational competition” eradicated most of its profit in the June quarter. That spooked investors already nervous about deepening losses in the online arena, prompting a series of downgrades on Meituan. Shares in Alibaba and JD both slid about 5%, while Meituan was down 13% at one point. The Hang Seng Tech Index led losses in Asia on Thursday, slumping as much as 2.3%.The plunge in profitability illustrates how Meituan is facing its greatest challenge in years from twin rivals that — till recently — had largely ceded the domestic meal sector. That changed in 2025 when JD.com, pursuing growth during a consumption downturn, and Alibaba’s Ele.me began offering generous subsidies to cash-strapped diners.The Beijing-based company now expects “significant losses” for its core local commerce business including food delivery in the current quarter, Chief Financial Officer Chen Shaohui told analysts on a post-earnings call on Wednesday.“We expect there will be continued fierce competition in the near term,” Chen said. “That will bring negative impact on our financial results.”The three-way battle in the food arena eroded profitability across the sector and forced Meituan to defend its core business on multiple fronts. This month, JD.com reported a halving in net income for the quarter. Alibaba has posted muted growth and is set to report earnings on Friday.In past months, the trio has invested billions of dollars in incentives and in hiring delivery riders. This strategy backfired with investors, who sold off shares in Meituan and JD.com, erasing roughly $100bn of their combined market value at one point.Following a warning from industry regulators, the three corporations in August pledged to cease their “disorderly competition” and avoid a self-destructive price war.Faced with margin pressure at home, Meituan is looking overseas. Its own aggressive pricing strategy forced Deliveroo Plc to retreat from Hong Kong after a decade of operating in the city.