Cybersecurity stocks plummeted on Friday following Anthropic’s launch of Claude Code Security, an AI tool designed to scan code for vulnerabilities and suggest patches. This development raised concerns within a sector already shaken by AI disruptions, causing notable declines among major players. CrowdStrike and Cloudflare both dropped about 8%, while Okta fell over 9%. The Global X Cybersecurity ETF closed at its lowest since November 2023, reflecting a broader sell-off that erased billions in market value in one day. The unique capabilities of Claude Code Security, including its ability to identify complex vulnerabilities previously missed by traditional tools, heightened investor anxiety. Anthropic’s report of discovering over 500 vulnerabilities in existing codebases during testing further spooked Wall Street. Analysts predict that while cybersecurity might benefit from AI advancements, immediate market reactions may remain volatile as the industry grapples with these emerging technologies.
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