Tech stocks are dragging down Wall Street this week as investors flee once-hot shares.

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.

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.

Friday morning's moves followed a rough day on Wall Street, with the market once again bogged down by technology stocks.

US stocks got hit as oil investors skimmed profits in the tech sector and concerns rose over higher oil prices.

The memory chip specialist has room to run much higher in the coming year.

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.

Data tracked by BI show the Magnificent Seven are expected to post an 18% rise in 2026 profits after a 28% surge last year. On the other hand, earnings growth at the rest of the index is projected to accelerate to 12% this year from 8% in 2025.

Sharp drops hit Wall Street on Thursday as technology stocks fell and bitcoin plunged again to roughly half its record price set last fall. Several discouraging reports on the U.S. job market also knocked down yields in the bond market.