Sector Snap: Software shares sink with market

News that the House of Representatives had voted against the plan to rescue troubled banks, brokerages, credit unions, thrifts and insurance companies sent the technology-heavy Nasdaq down more than 6 percent in afternoon trading.

Software companies like Microsoft Corp., which has stellar credit ratings and a flush balance sheet, have been seen as relatively safe investments in recent weeks in what analysts have called a "flight to quality."

But the Redmond, Wash.-based company suffered Monday along with its peers. Shares of Microsoft sank $1.60, or 5.8 percent, to $25.80 in afternoon trading.

Database and business software makers Oracle Corp. and SAP AG were also dragged down by market-wide fear. Redwood Shores, Calif.-based Oracle's shares lost $1.27, or 6.2 percent, to $19.35, while SAP's stock fell $3.65, or 6.4 percent, to $53.83.

Salesforce.com Inc., a San Francisco-based company that sells Web-based customer management and other business programs by subscription, saw its stock price fall $6.23, or 12.3 percent, to $44.42. The stock earlier set a new 52-week low of $44.38.

Shares of San Jose, Calif.-based Adobe Systems Inc., which makes graphic design and rich media creation programs, plunged $3.25, or 8.1 percent, to $36.74.