IBM sparked a market rout on Tuesday after forecasting second-quarter revenue below estimates and signaling that businesses were favoring spending on data-center infrastructure over software, the starkest sign yet of AI's growing toll on the sector.
Shares of Big Blue slumped 20% in premarket trading, dragging other software stocks and Dow futures lower. The iShares Expanded Tech-Software Sector ETF was last down more than 4%.
