US IT hardware stocks tumble as Morgan Stanley flags slowing demand


A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 15, 2026. REUTERS/Brendan McDermid

Jan 20 (Reuters) - ‌U.S. IT hardware stocks dropped on Tuesday after Morgan Stanley ‌downgraded the sector, warning of slowing demand as companies rein ‌in spending amid economic uncertainty and rising component costs.

The Wall Street brokerage said corporate technology leaders dialing back hardware spending plans adds to existing concerns over higher input ‍costs and supply bottlenecks, cutting its industry ‍view to "cautious" from "in line."

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