Stocks Slip as Software Selloff Sparks AI Concerns | The Close 2/23/2026
•February 24, 2026
0
Why It Matters
The sell‑off signals a potential re‑pricing of AI‑exposed software stocks, while tariff litigation outcomes could unlock billions for affected businesses, reshaping sector allocations and investor risk appetite.
Summary
The Bloomberg Close highlighted a broad market pullback driven primarily by a sharp sell‑off in software stocks, as investors worry that generative AI tools could render legacy suites obsolete. The Nasdaq slipped about 1.5%, gold rose on safe‑haven demand, and the 2‑year Treasury yield nudged higher after a Supreme Court ruling that revived tariff‑related uncertainty.
Invesco’s head of asset allocation, Alessio de Longis, urged a rotation toward financials, industrials, materials and mid‑cap/value names, arguing that these sectors offer the best exposure to the underlying growth environment while avoiding the AI‑heavy software space. He described the current macro backdrop as a “Goldilocks” scenario: modest global growth, inflation easing toward target, and central banks in a holding pattern, which together support risk assets despite lingering yield‑curve steepening.
Notable remarks included de Longis’s confidence that growth is “clearly rising” for the first time in two years, and Nevada Attorney General Aaron Ford’s declaration that the Supreme Court’s decision vindicated the states’ challenge to Trump‑era tariffs, promising to pursue refunds for businesses that paid nearly $1 billion in duties. Analysts also shifted recommendations, with Wells Fargo upgrading Alphabet as an AI winner and cutting Workday’s price target by more than half.
The combined effect suggests investors should reassess exposure to software firms, monitor the unfolding tariff‑refund process, and consider sector rotation into more defensive, cyclical equities. Continued vigilance on AI’s impact and policy developments will be crucial for portfolio positioning in the coming weeks.
Original Description
Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are Invesco’s Alessio de Longis, Nevada’s Aaron Ford, Jefferies’ Brian Tanquilut, RXO’s Drew Wilkerson, Citizens Private Wealth’s Michael Hans, Bracewell's Joshua Zive, American Bankers Association’s Kenneth Kelly, Sagard’s Paul Desmarais III, and Coach’s Todd Kahn.
Chapters:
00:00:00 - Bloomberg The Close
00:02:58 - Invesco’s Alessio de Longis
00:09:30 - Nevada’s Aaron Ford
00:16:06 - Top Calls
00:17:32 - Jefferies’ Brian Tanquilut
00:24:41 - RXO’s Drew Wilkerson
00:32:42 - Norah Mulinda, Bloomberg News
00:37:05 - Citizens Private Wealth’s Michael Hans
00:43:31 - Closing Bell
00:56:31 - Bracewell’s Joshua Zive
01:02:31 - Mary Ross Gilbert, Bloomberg Intelligence
01:06:42 - Michael McKee, Bloomberg News
01:09:35 - American Bankers Association’s Kenneth Kelly
01:16:10 - Sagard’s Paul Desmarais III
01:23:04 - Coach’s Todd Kahn
--------
More on Bloomberg Television and Markets
Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9
Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more.
Connect with Bloomberg Television on:
Connect with Bloomberg Business on:
More from Bloomberg:
Watch more on YouTube:
Bloomberg Podcasts: https://www.youtube.com/@BloombergPodcasts
0
Comments
Want to join the conversation?
Loading comments...