Woofun AI data shows that International Business Machines Corporation shares plummeted 26% during Tuesday's morning trading session, marking the worst single-day performance since at least 1968 if the decline holds through close. IBM attributed the underperformance to customers redirecting capital expenditures away from its products toward chips and servers.

The broader software sector faced significant downward pressure, with Microsoft falling 2%, Workday Inc. dropping 6.3%, Salesforce Inc. declining 3.2%, Autodesk Inc. losing 2.4%, and SAP SE decreasing 3.4%. The iShares Expanded Tech-Software Sector ETF briefly fell 2.7% before the decline narrowed.