IBM Loses $18 Billion in Market Value as Lyft Plunges 17%

U.S. equities closed marginally lower on Wednesday, but beneath the surface, sharp stock-specific losses underscored growing investor sensitivity to interest-rate expectations and competitive pressures in the technology and mobility sectors.

While the broader market decline was limited, individual names suffered outsized damage — most notably IBM and Lyft.

Markets initially opened higher after January’s closely watched U.S. jobs report showed stronger-than-expected payroll growth and a drop in the unemployment rate to 4.3%. The data eased concerns about economic momentum but simultaneously reduced expectations for near-term Federal Reserve rate cuts.

Although investors continue to price in at least one 25-basis-point cut in June, the probability of rates remaining unchanged that month climbed sharply to 41%, up from 24.8% previously.

As traders recalibrated their interest-rate outlook, early market gains faded.

The Dow Jones Industrial Average slipped 0.1%, or 66 points, ending a three-session winning streak and retreating from its recent record high.

The Nasdaq Composite fell 0.2%, marking its second consecutive daily decline, while the S&P 500 finished the session essentially flat.

Among the heaviest drags on the S&P 500 were Microsoft, which fell 2.2%, and Alphabet, which dropped 2.4%, erasing its gains for the year and closing at its lowest level since January.

Investor focus now shifts to the upcoming U.S. consumer price index (CPI) report for January, scheduled for release Friday, which could further reshape expectations for monetary policy.

IBM shares declined 6%, closing at their lowest level in nearly five months and wiping out approximately $18 billion in market capitalization in a single session.

The stock led losses on the Dow Jones even as the company announced the launch of a new autonomous storage system under its FlashSystem portfolio, supported by agentic artificial intelligence technology.

Separately, Germany’s Federal Cartel Office approved IBM’s merger with Confluent, noting that IBM is not considered a direct substitute for Confluent in the relevant market — a regulatory development that, however, did little to offset selling pressure.

Shares of Lyft plunged 17%, marking their sharpest daily loss in a year and a half. The decline followed signs of slowing ride growth amid persistent competitive pressure from larger rival Uber.

Lyft also projected lower adjusted core earnings for the first quarter, citing harsh winter weather in the United States and seasonal cost pressures. The company additionally reported an unexpected operating loss for 2025, further dampening investor confidence.