Adobe (ADBE) shares fell 3.26% to $289.82 as the broader software sector experienced sympathy selling following a significant drop in Microsoft stock after its earnings report.
- The selling pressure originated from Microsoft's 12% share price drop, driven by concerns over record $37.5 billion in AI capital expenditures and Azure growth.
- The decline in ADBE was attributed to sympathy selling rather than any company-specific negative news.
- The broader market reflected this anxiety, with the NASDAQ Composite falling 1.23% amid investor concerns that AI development costs are exceeding profitability expectations.