US Stock Market Move | Software sector as a whole is under pressure, Workday (WDAY.US) fell more than 4%

On Tuesday, following IBM's (IBM.US) release of preliminary results below expectations, the stock price plummeted by 25%. The software sector as a whole was under pressure, with Workday (WDAY.US) falling over 4%, ServiceNow (NOW.US) dropping nearly 4%, Intuit Inc. (INTU.US), Adobe (ADBE.US), SAP SE (SAP.US), and Duolingo (DUOL.US) all dropping over 2%, while Salesforce, Inc. (CRM.US) fell over 1%. On the news front, on July 14th, IBM's second-quarter performance preliminary data disappointed the market. The company disclosed that revenue was below analysts' expectations, with CEO Arvind Krishna stating that some customers are shifting capital expenditure towards hardware areas such as servers, storage, and memory, putting pressure on software purchases. Additionally, internal sales execution fell short of expectations, with several large contracts not closing as planned, further dragging down quarterly performance.