IBM Stock Rebounds 4% After Historic Selloff Triggered by AI Disruption Fears

IBM shares rose 4% to reach $234.68 as the market attempted to stabilize following a period of intense volatility. The recovery follows a historic 13% plunge on Monday, marking the company's largest single-day decline in more than 25 years. Investor anxiety was sparked by Anthropic's new 'Claude Code' tool, which threatens IBM's core mainframe business by automating the modernization of legacy COBOL systems. Despite the recent bounce, IBM is still facing its worst monthly performance since 1992, with shares down 27% overall this month. Analysts are now reassessing the long-term impact of generative AI on IBM's traditional revenue streams and its ability to pivot effectively. The current price action highlights a high-volatility environment as the tech giant faces fundamental challenges from emerging AI technologies.