IBM Shares Slide on Anthropic’s COBOL Automation Tool and Tariff Hike
IBM shares dropped after Anthropic rolled out a tool automating COBOL system updates, joining broader market declines triggered by Trump’s tariff hike from 10% to 15% and intensified AI displacement fears. A report forecasts AI could displace white-collar jobs and drive US unemployment above 10% by 2028, prompting investors to pivot toward recession-resistant stocks with robust cash flow.
1. Macro headwinds push tech shares lower
Tech stocks fell sharply after the US raised tariffs from 10% to 15%, fueling concerns over supply-chain costs and profit margins. Heightened fears about AI-driven job displacement amplified the sell-off, as investors digested forecasts of US unemployment climbing above 10% by 2028.
2. IBM falls on COBOL automation tool and investor pivot
IBM shares declined significantly following Anthropic’s launch of a tool that automates legacy COBOL system updates, underscoring market worries about AI disrupting traditional IT services. In response, investors are shifting toward companies with strong balance sheets, steady cash flow and products deemed recession-resistant.