Cyber Stocks Sink on Report Anthropic AI Model Poses Security Risks

Cybersecurity stocks slumped on Friday after a Fortune report raised concern that an Anthropic PBC artificial intelligence model being tested may be used by hackers to skirt current cyber defenses.

Shares of CrowdStrike Holdings Inc., Palo Alto Networks Inc. and Zscaler Inc. all dropped more than 5%, while Cloudflare Inc. shed 3.4%. The Global X Cybersecurity ETF fell 4.5%, closing at its lowest since November 2023 and bringing its decline this year to more than 21%.