Despite the unpredictable wildcard of an Iran war and concerns regarding software companies amid the rapid rise of fears around artificial intelligence (AI), Evercore Founder and Senior Chairman Roger Altman remains optimistic about the U.S. economy, noting that foundational strengths and technological advancements outweigh current geopolitical fears.
Dismissing The ‘SaaS Apocalypse’
Addressing the rapid evolution of AI in a conversation with CNBC, Altman pushed back against doomsday predictions surrounding the tech sector.
While he acknowledges AI will be “very transformative,” he believes the market’s focus on what AI might destroy has gone too far. When asked if the market is facing a “SaaS apocalypse“—the idea that AI will decimate software-as-a-service companies—Altman was definitive.
“I don’t see that,” he said, pointing out that software stocks have historically bounced back from sharp corrections. “At the moment, I don’t see AI as a force that should undermine markets and cause economic forecasts to be marked down. In fact, I think that it’s likely to be positive.”
These statements come as top U.S. software stocks like Microsoft Corp. (NASDAQ:MSFT), Oracle Corp. (NYSE:ORCL), and Salesforce Inc. (NYSE:CRM), were down 18.99%, 21.55%, and 26.64%, respectively, on a year-to-date basis.
Economic Resilience Amid Geopolitical Strife
Altman noted that financial markets are currently navigating two colliding crosscurrents: a fundamentally solid U.S. economy and the ongoing conflict in the Middle East.
While the closure of the Strait of Hormuz threatens 20% of global oil exports and will be difficult to reopen without a ceasefire, Altman stressed that the U.S. is uniquely positioned to weather the storm.
“The U.S. economy is a huge and very resilient thing,” Altman said, pointing out that America is a net exporter of oil and that consumers spend less than 5% of their disposable income on gasoline.
Furthermore, he noted that most macroeconomic forecasters have built a “30-day conflict” into their assumptions, which explains why equities remain strong. Unless the conflict drags on for months and significantly alters business conditions, Altman does not advise clients to drastically change their investment strategies.
Dealmaking Marches On
Despite the momentary uncertainty that global strife can create, corporate leaders remain active.
Altman confirmed there has not yet been any “diminution in activity” regarding corporate transactions, as decision-makers continue to bank on a short-lived conflict.
Markets Fall In 2026
The S&P 500 index tumbled 3.41%, whereas the Nasdaq Composite and Dow Jones declined 4.66% and 4.46%, respectively, year-to-date.
On the other hand, the ETF tracking WTI Crude futures, United States Oil Fund LP (NYSE:USO), has risen 74.46%, and the top software stocks tracker iShares Expanded Tech-Software Sector ETF (BATS:IGV) declined 21.17%, in the same period.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, closed lower on Wednesday. The SPY was down 1.40% at $661,43, while the QQQ declined 1.39% to $594,90.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo curtesy: Ton Wanniwat on Shutterstock.com
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