The first week of February 2026 may be remembered as the moment Wall Street finally asked the question it avoided for 18 months: Can AI replace the software it was supposed to enhance?

After Anthropic launched automation tools aimed directly at legal and financial workflows, nearly $1 trillion in software market value evaporated in days. The sector didn’t just fall — it was repriced.

In this Weekly Wrap, we break down:
• Why AI agents just turned from friend to foe
• Why software margins and licenses are under real threat
• Why Big Tech’s massive AI CapEx is no longer being rewarded
• Why Amazon, Alphabet, and Microsoft are being forced to prove monetization
• Why the labor market is slowing — without layoffs
• Why “resilience” may actually be paralysis

This isn’t panic. It’s a reset.

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