Investors’ Worries for Software’s Future, Middle East’s Present, Weigh on Stocks

Stocks slipped as investors weighed weak software-sector outlook and rising Middle East tensions. The Nasdaq led losses, down 0.9%, while the S&P 500 and Dow fell about 0.4% (the Dow off roughly 180 points). Software names drove the weakness: ServiceNow plunged about 18% after cutting an operating-margin projection, and an expanded-software ETF saw its biggest one-day percent drop since April 2025. Megacap tech also weighed on markets—Microsoft closed about 4% lower after announcing voluntary buyouts, Meta fell after layoffs, and IBM tumbled 8.3% after maintaining revenue guidance. Tesla dipped roughly 3.6% after unveiling a $25 billion capex plan tied to its AI and robotics push. Geopolitical headlines—U.S., Israel and Iran tensions and threats in the Strait of Hormuz—added risk-off pressure. Overall the piece describes broad market downside driven by sector-specific software worries, disappointing corporate updates, and geopolitical risk.