Tech Stock Selloff Deepens on AI Disruption Fears, Risk Sentiment Shifts

US software stocks are experiencing another sharp selloff, with major names declining significantly: Palantir (-4.2%), AppLovin (-6.2%), Intuit (-5.6%), Adobe (-2.2%), Autodesk (-5.5%), Workday (-6.5%), Zoom (-5.8%), and Unity plunging 28%. The catalyst was Claude's release of a series of AI plugins, prompting investors to reassess the competitive moats and pricing power of established software companies. This broad-based tech weakness is weighing on overall risk sentiment, which has indirect but meaningful implications for forex markets. Risk-sensitive currencies such as AUD and NZD may face headwinds as equity market volatility rises, while traditional safe havens like JPY, CHF, and USD could see increased demand. The NASDAQ-heavy selloff mirrors concerns that AI disruption could compress software margins industry-wide. Forex traders should monitor the VIX and equity futures closely, as sustained tech weakness often correlates with risk-off flows favoring the US dollar and Japanese yen against higher-beta currencies in the near term.