Fresh waves of AI-driven disruption rippled through financial markets Monday after Anthropic introduced new functionality in its Claude platform designed to accelerate the modernization of legacy COBOL systems — an area long associated with steady consulting revenue for IBM.
Anthropic said its Claude Code tools can automate much of the exploratory and analytical work traditionally required to update COBOL infrastructure. The decades-old programming language, Common Business-Oriented Language, remains deeply embedded in the global financial system. According to the company, COBOL still handles roughly 95% of ATM transactions in the United States, with enormous volumes of code operating critical systems across banking, aviation, and government.
Modernizing those systems has historically required extensive manual review by large consulting teams, often stretching over years. Complicating matters, many original COBOL developers have retired, and relatively few universities continue to teach the language, leaving enterprises with a shrinking talent pool. That dynamic has helped sustain demand for legacy system consulting — a business line tied to IBM’s enterprise services division.
The prospect that AI tools could streamline or partially displace that work weighed heavily on IBM shares, which were down 11.2% shortly before the close.
The decline added to broader weakness in AI-sensitive sectors. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each fell more than 1% as investors reassessed the competitive landscape for traditional software and services firms.
Commentary from The Kobeissi Letter described the current environment as a transformative period, emphasizing how rapidly AI innovation is reshaping established business models.
Cryptocurrencies, which have shown increased correlation with high-growth tech stocks, also came under significant pressure. Bitcoin dropped 5% over the past 24 hours to $64,000. Ethereum and Solana recorded similar declines, with many major tokens approaching levels seen during the Feb. 5 selloff.
Crypto-related equities followed the downturn. Coinbase, MicroStrategy (MSTR), Circle, and Galaxy Digital fell between 4% and 7%.
One segment bucked the trend: bitcoin miners expanding into AI infrastructure services. IREN gained 5%, Cipher Mining rose 3.4%, CleanSpark advanced 1.5%, and Hut 8 added 0.7%.
Meanwhile, investors rotated into traditional safe-haven assets. Gold climbed 3.2% to $5,243 per ounce, while silver surged 6.5% to $87.69, underscoring a broader risk-off shift as AI-related uncertainty reverberated across markets.
