Enterprise software names were under pressure Thursday as investors weighed the potential fallout from President Donald Trump's new round of reciprocal tariffs. The move, tied to a national emergency declaration under the International Emergency Economic Powers Act, raised fears that IT budgets could tighten, especially in international markets.
Atlassian (TEAM, Financial) led the decline, falling more than 12% as the Australia-based company faced added exposure to shifting global trade dynamics. Other enterprise software players followed suit. ServiceNow (NOW, Financial) dropped over 8%, Salesforce (CRM, Financial) lost around 7%, and Oracle (ORCL, Financial) slid roughly 6%.
Work management platform Asana (ASAN, Financial) also saw steep losses, plunging close to 10% in Thursday's session.
The broader software sector didn't escape the downturn either. The iShares Expanded Tech-Software Sector ETF (IGV, Financial) fell about 5% by late morning. Microsoft (MSFT, Financial) was down more than 2.5%, while Palantir (PLTR, Financial), which provides AI-driven solutions to enterprises and governments, dropped more than 5%.
Commenting on the broader market reaction, Deutsche Bank strategist Jim Reid noted that the tariffs were “extraordinary in both scale and methodology,” highlighting the uncertainty surrounding how long the current trade stance could last and how deeply it might cut into global tech spending.
