Shares of International Business Machines Corp. showed some signs of recovery during pre-market trade after a historic crash in the previous session.
Futures tied to IBM's stock rose over 1.7% to $220.7, after cratering over 26% in Tuesday's session on weak Q2 earnings and outlook.
The recovery trickled down to other American software companies like Cognizant Technology Solutions Corp. and Accenture Plc who rose 1.71% and 0.55% to $43.77 and $137.75.
American Depository Receipts of US-listed Indian IT giants Wipro and Infosys also hinted at a higher open. Wipro futures traded over 1% higher at $1.89, while Infosys rose marginally to $11.2. However, as of 8:08 a.m. EST, the ADR futures pared gains.
ALSO READ: IBM's 25% Crash: Quantum Computing, AI Push — Five Takeaways From CEO's Letter To Investors
IBM's Miss And IT Crash
On Tuesday, IBM suffered its worst single-day stock market decline in history since 1987 after releasing preliminary second-quarter results that disappointed investors, sending shares down over 26%.
The selloff eclipsed the company's previous worst trading day during the 1987 stock market crash, when the stock fell 23.7%, making it the steepest one-day decline since records began in 1968.
The sharp reaction came after IBM reported weaker-than-expected software and infrastructure performance. Revenue rose just 1% year-on-year to $17.2 billion, while infrastructure revenue fell 7%.
Soon after the results, Chairman and CEO Arvind Krishna issued a candid letter to investors explaining what went wrong, why management missed its own expectations and why he believes IBM's long-term strategy remains intact.
In the aftermath, shares of Cognizant, Accenture and other software companies also declined. The crash not only cracked ADRs of Infosys and Wipro, but also cracked the Indian IT sector on Wednesday, which dived as low as 1.74%. The IT benchmark closed 0.7% lower at 28,532.25
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