NEW YORK, Feb 17, 2026, 14:32 ET — Regular session
Adobe Inc dropped 1.4% to $260.33 on Tuesday, losing $3.64 as software stocks came under renewed pressure. Shares of the Photoshop developer moved between $255.88 and $268.80, with traders eyeing the latest wave of artificial-intelligence disruption concerns.
Adobe’s role is pivotal here, caught in the middle of a larger argument—will generative AI actually eat into demand for paid creative tools, or simply change what that demand looks like? Whenever those fears flare up, it isn’t just Adobe that takes a hit. Investors often unload a broader mix of software stocks, not just the headline players.
Software names took another hit, with the S&P 500 software index dropping 1.4%. CrowdStrike shed 5%. Salesforce lost anywhere from 2% to 5%, according to Reuters. Losses come on the heels of last week’s AI-driven selloff, which pushed the major Wall Street benchmarks to their worst week since mid-November. Over in China, Alibaba rolled out a fresh AI model, Qwen 3.5, on Monday. “It’s an indiscriminate selling in all things tech, with more of a focus on software,” said Art Hogan, strategist at B Riley Wealth. 1
Friday brings fresh inflation data for investors. The Personal Consumption Expenditures (PCE) price index, which the Federal Reserve favors, lands at 8:30 a.m. ET on Feb. 20 as part of the Personal Income and Outlays release. 2
Chicago Fed President Austan Goolsbee on Tuesday flagged the possibility of “several more” rate cuts in 2026, assuming inflation shows unmistakable progress toward the central bank’s 2% target. The Fed left rates unchanged at the end of January, and traders widely anticipate another hold when policymakers meet March 17-18. 3
Adobe — best known for its Creative Cloud and other subscription products — often moves like a classic long-duration growth play. Much of its market value hinges on future profits, so changes in rates or AI sentiment can outweigh the typical daily swings.
Still, price swings have been sharp whichever way you look. A cooler PCE print on Friday might let up on rate-sensitive tech, but if the data runs hot, bond yields could climb and software names could get knocked again.
Adobe has circled March 12 for its first-quarter fiscal 2026 earnings call, set for 2:00 p.m. Pacific. Details are posted at 4 .
Now, traders are eyeing whether the stock finds its footing before data drops Friday and results land next month. Key trigger: the Feb. 20 PCE report. After that, it’s all about Adobe’s March 12 earnings call.
