Shock wave from bank failures is hitting software stocks now

The failures of Silicon Valley Bank and Signature Bank shook the banking sector last month, and now the reverberations are rippling through software stocks.

Tenable Holdings Ltd. TENB shares were headed for their worst day ever Tuesday after the cybersecurity company cut its guidance in an earnings report delivered after markets closed on Monday — and they were taking other security and software stocks down with them. Analysts put the blame on a slowdown in spending by companies in the banking and finance sectors, a core customer…