Weekly Market Commentary for Long-Term Investors

U.S. equities declined broadly as renewed anxiety around artificial-intelligence disruption weighed heavily on software and growth stocks. Strength in Utilities, Basic Materials, and Energy reflected a defensive rotation into yield and real-asset exposure, while Financials and Communication Services posted the sharpest losses. Technology and Consumer Cyclical also lagged as investors questioned valuation resilience and the durability of AI-driven momentum.

Gold and silver suffered a violent one-day reversal after months of parabolic gains, with the move accelerated by a sharp shift in rate expectations and a stronger dollar. Reports that President Trump would nominate Kevin Warsh to succeed Jerome Powell pushed markets to price a more hawkish Fed path, triggering a rapid unwind of the “debasement trade.” The size of the drop also reflected thin liquidity and crowded positioning—turning precious metals into a headline-driven, meme-stock-like swing market.

Investors are suddenly questioning whether AI “agents” could hollow out parts of the $1.2T software industry after Anthropic’s Claude Cowork rollout showed how quickly workflows can be automated with natural-language prompts. The selloff reflects fear that companies will “vibe code” internal tools and cut SaaS subscriptions—but many executives argue mission-critical software is too compliance-heavy and deeply embedded to rip out overnight. The more realistic outcome is a split market: adaptable platforms that embed agents and remain systems-of-record can thrive, while undifferentiated “dumb software” faces pricing pressure, tougher renewals, and consolidation.