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IBM's stock dropped 13% after Anthropic revealed an AI capable of programming in COBOL, raising investor concerns over AI's impact on the software industry and economy. Analysis predicts a looming economic crisis with rising unemployment due to AI automation affecting software companies and customer service sectors.

The software sector index dropped 20% this year, with Salesforce and SAP losing significant market value. Conversely, utility stocks increased by 10% as investors seek safer options. Morgan Stanley's MSCI Robotics & AI index remains stable, indicating continued investor confidence despite associated risks.