Enterprise software stocks, led by Atlassian (NASDAQ:TEAM), followed the rest of the market down during Thursday trading, as the reciprocal tariffs imposed by U.S. President Donald Trump could prompt a slowdown in IT spending.

Australia-based Atlassian had plunged 12%. Competitor ServiceNow (NYSE:NOW) had slid 8%, while Salesforce (NYSE:CRM) had declined 7% and Oracle (NYSE:ORCL) had fallen 6%. 

Asana (NYSE:ASAN), another work management platform, dove nearly 10%.

The iShares Expanded Tech-Software Sector ETF (BATS:IGV) had dropped 5% by late morning market action.

Microsoft (NASDAQ:MSFT) was down 2.7%. Palantir (NASDAQ:PLTR), which provides artificial intelligence-powered software for enterprises and governments, had sunk 5%.  

"In short, the tariffs put in place last night were extraordinary both in terms of scale and in how they were calculated, with President Trump announcing reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) as he declared a national emergency over the trade deficit," Deutsche Bank's Jim Reid said.

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