Enterprise software stocks were lower on Tuesday as traders awaited further catalysts in the sector and looked towards the end of the week, when Federal Reserve Chairman Jerome Powell is set to speak at the upcoming Jackson Hole economic conference.
Palantir (NASDAQ:PLTR) shares fell more than 6% in late morning trading, while Oracle (NYSE:ORCL) was off more than 3.5%. Both companies have benefited from increased investor enthusiasm in all things related to artificial intelligence. Shares of Palantir have jumped more than 116% year-to-date, while Oracle has surged more than 44%.
Industry giant Microsoft (NASDAQ:MSFT), which has also benefited from AI, saw a more tepid decline on Tuesday, down roughly 1.2%. Shares of the Satya Nadella-led firm have gained more than 20% in 2025, bringing its market cap to $3.8T, making it the second most valuable company behind Nvidia (NVDA).
Adobe (NASDAQ:ADBE) bucked the sell-off, as shares rose 0.5% after the company announced an AI-powered version of its Acrobat Studio. Acrobat Studio comes with access to Adobe Express Premium’s entire suite of tools and assets, including professionally designed templates, brand kits and Adobe Firefly-powered tools like Text-to-Video and Text-to-Image.
Cybersecurity stocks were mostly lower, save for Palo Alto Networks (PANW), which reported better-than-expected quarterly results on Monday. Palo Alto shares rose 4.5%, but were off the best levels of the session.
Others, such as Fortinet (FTNT), Zscaler (ZS), CheckPoint Software (CHKP) and Okta (OKTA), were lower in morning trading.