The Dow jumped more than 1,000 points and the Nasdaq rose more than 2% as dip-buyers rushed into the market after days of intense selling.

SaaS companies took major hits: Microsoft closed down 2.87%, SAP was down 3.29% this morning on the German market, Salesforce lost 6.85% yesterday and was further down in overnight trading, ServiceNow was down 6.97% yesterday and was marginally lower overnight, also.

An even bigger downturn is hitting software-as-a-service (SaaS) companies. The iShares Expanded Tech Software ETF, which has software majors like Microsoft, Salesforce, and ServiceNow in its portfolio, is down about 25% year to date.

Berkshire Hathaway's stock outperformed the benchmark S&P 500 stock index this week as investors sought safety from tech selling.

It’s also widened to include the industry’s Wall Street backers, from lenders to private equity owners for whom software firms have been popular targets. More than $17.7 billion of US tech company loans in a Bloomberg index dropped to distressed trading levels during the past four weeks.

Live Updates Tech Gains Buoy Nasdaq Composite Higher 1 hour ago Live Nvidia (Nasdaq: NVDA) stock has begun to rally, climbing 7% higher and helping to alleviate fears of the AI bubble in the markets.

There is a “crisis of confidence” gripping the technology sector, according to a Mizuho analyst. For that reason, investors may want to focus their attention on stocks backed by strong fundamentals.

It might be hard for investors to feel upbeat while tech stocks are tumbling. But that's exactly how some experts are reacting to the rout.

The prospect of disruptions from artificial intelligence has hung over the economy for years. But this week advances in software tools precipitated a sell-off on Wall Street.

The immediate spark for the Friday sell-off was the Amazon fourth-quarter earnings report. The e-commerce giant projected that its capital expenditures would reach $200 billion in 2026. CNBC reported that Amazon's Capex figure was $50 billion higher than expected, and the stock market reacted accordingly.