It was a big drag on the S&P 500 while other software stocks also tumbled with SAP’s US-listed shares tumbling after its cautious cloud outlook and ServiceNow shares falling sharply as its earnings report added to the gloom. “Microsoft disappointed and there are some genuine concerns that AI investments will eat the software companies’ lunches,” said John Praveen, managing director & Co-CIO, Paleo Leon in Princeton, New Jersey. Software companies caught up in the selloff included Salesforce, Oracle, Adobe and cloud security firm Datadog. In other positive news, technology bellwether IBM shares rose after its fourth-quarter earnings beat estimates. Southwest Airlines shares soared after the carrier forecast a stronger-than-expected annual profit, putting it ahead in S&P 500 percentage gains.