Wall Street Breakfast Software selloff hits tech, markets
5 snips
Jan 29, 2026 A broad software selloff ripples through tech, dragging down major indexes and commodities. A massive Microsoft market-cap drop and debate over Azure capital spending spark concern. ServiceNow's results clash with slowing growth worries. Caterpillar sees a boost from AI-driven data-center demand. Barry Diller's reported interest in buying CNN makes a surprise media headline.
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Software Sector Sparks Broad Market Drop
- Software stocks led a sharp market selloff that dragged down tech and broader markets.
- Microsoft and ServiceNow declines signaled investor concern about capacity and growth timing despite solid results.
Microsoft's Massive Single-Day Market-Cap Loss
- Microsoft's stock plunged about 12% wiping out nearly $400 billion in market cap in a single session.
- Investors are debating capacity, timing, and whether heavy CapEx is translating into Azure acceleration.
Investors Punish Lack Of Acceleration
- ServiceNow fell despite strong results because growth didn't show clear acceleration.
- The selloff reflects investor focus on acceleration metrics, not just absolute growth rates.