AI Selloff Hammers Europe as India Summit Looms
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- Dassault Systemes and RELX posted historic losses, with Dassault suffering its biggest ever one-day drop and RELX recording its worst session decline since 1988 as AI disruption fears hit European software stocks.
- St James's Place, Aberdeen Group, and Quilter all nursed deep losses last week, extending the AI selloff beyond software into European wealth management.
- UBS analysts warned the AI-driven selloff reflects disruption 'accelerating well beyond software' and that markets have only partially priced in the credit implications, with risk expected to increase through 2026 and into 2027.
- Dan Ives of Wedbush told CNBC that the 'software Armageddon is overblown,' arguing stalwarts like Salesforce and ServiceNow will be core participants in the AI revolution rather than cannibalized by it.
- India is hosting the 'AI Impact Summit' in New Delhi this week, drawing Anthropic CEO Dario Amodei, Microsoft's Brad Smith, Mistral AI co-founder Arthur Mensch, and Meta's Chief AI Officer Alexandr Wang.
- CNBC's Arjun Kharpal expects 'a number of big deals, partnerships and customer announcements' from tech companies in India, including cloud deals, AI infrastructure, and government-tech collaborations.
Why it matters: UBS warns the AI-driven selloff extends well beyond software and that credit risk will rise through 2026-2027, with markets having only partially priced this in. The India summit's deals and partnerships will test whether Wedbush's 'overblown' counter-view holds up against the bears.
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