It’s also widened to include the industry’s Wall Street backers, from lenders to private equity owners for whom software firms have been popular targets. More than $17.7 billion of U.S. tech company loans in a Bloomberg index dropped to distressed trading levels during the last four weeks.

SaaS companies took major hits: Microsoft closed down 2.87%, SAP was down 3.29% this morning on the German market, Salesforce lost 6.85% yesterday and was further down in overnight trading, ServiceNow was down 6.97% yesterday and was marginally lower overnight, also.

Software stocks tumbled nearly 20% over the week, marking one of its worst weekly performances since the 2022 tech rout.

Consumer staples and chemicals are also among AI-resistant firms, JonesTrading’s O’Rourke noted. The staples group, composed of companies such as Dollar General Corp. and Dollar Tree Inc., has fared the best among the S&P 500 sectors this week.

It might be hard for investors to feel upbeat while tech stocks are tumbling. But that's exactly how some experts are reacting to the rout.

There is a “crisis of confidence” gripping the technology sector, according to a Mizuho analyst. For that reason, investors may want to focus their attention on stocks backed by strong fundamentals.

Tech stocks drag the S&P 500 and Nasdaq 100 lower as AI spending fears, weak forecasts, and alarming layoff data weigh on US stock market sentiment.

US stocks got hit as oil investors skimmed profits in the tech sector and concerns rose over higher oil prices.

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Shares MSCI USA Momentum Factor ETF downgraded to Hold as momentum fades and tech underperforms. Read here for more on MTUM ETF.