The software-as-a-service (SaaS) industry has been in freefall. A $1 trillion selloff has ripped through the sector in 2026, driven by growing fears that artificial intelligence (AI) will not just improve software but could replace large parts of it. The iShares Expanded Tech-Software Sector ETF (IGV) is down nearly 21% this year, a slide that traders have labeled everything from a "SaaS-pocalypse" to a full-blown "software apocalypse".
The panic has not stayed confined to software. On Feb. 12, transportation stocks got caught in the crossfire after Algorhythm Holdings (RIME) claimed its AI-powered SemiCab freight-optimization platform could let shippers triple volumes without adding headcount. The SPDR S&P Transportation ETF (XTN) initially fell about 7.7%, and C.H. Robinson Worldwide (CHRW), one of the world's largest freight intermediaries, dropped over 23% in a single session.
