Xero Ltd's stock plummeted 5.03% during Tuesday's intraday session, reflecting a sharp decline for the Australian accounting software firm.

The drop came amid a broader selloff in Asian software stocks, which tracked losses on Wall Street overnight due to renewed artificial-intelligence jitters. A viral research report from Citrini Research raised fresh fears that technological change could fuel a race to the bottom in white-collar knowledge work, spooking investors across the software sector.

This latest bout of AI anxiety has triggered a classic risk-off move in markets, adding to existing geopolitical and tariff concerns. Analysts note that new AI tool releases could continue to unsettle specific technology subsectors in the near term.