IBM shares collapsed 23% in US trading on Tuesday, marking the company's most severe single-day drop since the 1987 market crash.
The sell-off was triggered by a preliminary profit warning for the second quarter, which signaled significant headwinds for the technology giant and shattered investor confidence in its near-term earnings trajectory.
5%, a figure that reinforced expectations for a more accommodative monetary policy stance from the Federal Reserve.
The decline extended losses that had already begun in European trading, where the stock fell approximately 7% as markets digested the initial guidance miss.
The sharp repricing of IBM stock stood in stark contrast to the broader US equity market, which opened higher on the day.
Wall Street indices were buoyed by June inflation data that came in at 3.5%, a figure that reinforced expectations for a more accommodative monetary policy stance from the Federal Reserve.
While macroeconomic tailwinds supported the wider market, IBM's fundamental concerns proved isolated and severe, decoupling the stock from the general rally.