Software stocks drop across board amid broader market sell-off

Microsoft (NASDAQ:MSFT) and other major software companies were not immune to the price plunge witnessed across the market as the trading day opened Monday.

Microsoft and Salesforce (NYSE:CRM) fell 3% by early market action. Oracle (NYSE:ORCL) and Adobe (NASDAQ:ADBE) both dropped 4%. Datadog (DDOG) was down nearly 4% as well.

Palantir (NYSE:PLTR) plunged more than 6% ahead of its latest quarterly financial report, which will be released after the market closes today. Snowflake (SNOW) was down 5%.

Autodesk (ADSK), Cadence Design Systems (CDNS) and IBM (IBM) had slipped 2% while Workday (WDAY) inched 3.5% lower. Intuit (INTU) was down nearly 4%.

Among other Magnificent Seven stocks, Apple slid 5%, Google (GOOG)(GOOGL) was down 3% and Nvidia (NVDA) tumbled 7%.

The sell-off and subsequent downturn were triggered by investor concerns over a potential economic slowdown, following weaker-than-expected jobs data released last week, as well as a rise in geopolitical tensions.

“This is not the time to panic on the tech trade, [it’s] the time to go bargain hunting for our top tech names after this panic sell-off,” Wedbush Securities analysts led by Dan Ives wrote in an investor note.

“August is often a dangerous month, but with this one only being two and a bit business days old, we are seeing some astonishing moves already,” Deutsche Bank’s Jim Reid said.