IT Stocks: Shares of software and technology firms remained under pressure in overnight deals on Wall Street on Tuesday, February 17 as investor sentiment remained weak from growing fears of AI-driven disruption and diminishing expectations of a near-term interest rate cut by the US Federal Reserve. Concerns that rapid advances in artificial intelligence could upend existing business models continued to weigh heavily on the sector.
Several IT services stocks posted notable declines. EPAM Systems fell 2.5%, while Globant slipped 1.9%. Cognizant dropped 2.06%, and Accenture lost 1.94%. Among Indian IT firms listed in the U.S., Infosys ADRs edged up 0.20%, bucking the broader trend, while Wipro ADRs declined 2.14%.
Infosys, Tata Consultancy Services, Wipro, HCL Technologies and other IT stocks are likely to remain under pressure today, Wednesday, February 18, following the weakness in US tech stocks after witnessing recovery in the previous session.
Tech stocks have been facing renewed selling since last week after Anthropic introduced its Claude Cowork AI tool, designed to automate a wide range of workplace tasks. The launch sparked fresh worries about long-term demand for traditional software services and intensified last week’s global tech selloff. At the same time, optimism around monetary easing faded after U.S. economic data showed stronger-than-expected job growth in January, accompanied by a decline in the unemployment rate, reinforcing expectations that interest rates could remain elevated for longer.
