Dip-buyers go missing as software selloff slams stocks

Market Intelligence Analysis

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Why This Matters

The software sector is experiencing a selloff, with a 6th consecutive day of decline, and investors are not showing the typical 'dip-buying' behavior, indicating a lack of confidence in the sector.

Market Impact

Market impact analysis based on bearish sentiment with 90% confidence.

Sentiment
Bearish
AI Confidence
90%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

The software sector's deepening selloff on Wednesday failed to lure bargain hunters, with the dip-buying reflex that has rescued countless ​tech routs conspicuously absent. After a broad selloff on Tuesday that saw the S&P 500 ‌software and services index fall nearly 4%, the sector slipped another 1% on Wednesday, down for a sixth-straight session, extending ‌a decline that has shifted from AI optimism to disruption fears. Unlike other recent market slides, where investors have been quick to snap up battered shares, the worst selloff in the sector since 2022, when rising rates hammered software stocks, invited few buyers.

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Original article published by Yahoo Finance on February 4, 2026.
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