Stocks of Commvault, Bentley Systems, Alarm.com, Fastly, Akamai Technologies Plummet Amid AI Fears - S&P 500 IT Sector Down 3%

[Para 1: The Lead] The S&P 500 Information Technology sector experienced a significant downturn, with stocks of Commvault, Bentley Systems, Alarm.com, Fastly, and Akamai Technologies trading lower. The market reacted to fears of AI disruption, leading to a broad sell-off. The S&P 500 Information Technology Sector fell nearly 3% due to a "basket-style reaction," where investors reduced exposure to the entire sector. [Para 2-3: Supporting details & Context] Following the release of AI tools by Anthropic, designed for the legal profession, the market's sentiment shifted. This triggered a systemic fear that foundational AI models could cannibalize specialized software niches. Fastly, known for its volatility, saw its shares drop 14.7% year-to-date, trading 29.5% below its 52-week high. Fastly's shares fell 5.3% on news of a software sector-wide sell-off triggered by SAP and ServiceNow's mixed earnings. SAP's cloud backlog and revenue outlook fell short of forecasts, while ServiceNow's stock dropped despite better-than-expected results, heightening concerns about rising AI-related costs impacting enterprise software companies' profits. The S&P 500 Software and Services Index fell as a result of these fears.