New York, Jan 20, 2026, 14:19 EST — Regular session
- CrowdStrike shares dropped roughly 3% amid a widespread risk-off selloff dragging down tech stocks.
- The company unveiled plans to launch new in-country clouds in Saudi Arabia, India, and the UAE.
- Traders are focused on this week’s inflation numbers and the Fed meeting next week for the market’s next move.
CrowdStrike Holdings, Inc. shares dropped 2.8% to $441.18 in Tuesday afternoon trading, retreating despite the cybersecurity firm’s announcement of a new effort to boost regional cloud capacity.
The move is significant as “data sovereignty” — rules mandating sensitive data remain within national borders — increasingly block major security contracts. Vendors providing local data storage while maintaining access to global threat intelligence typically hold an advantage in regulated markets.
The tape looked rough. Investors fled growth stocks as Wall Street dipped following President Donald Trump’s threat of new tariffs on several European nations connected to the Greenland dispute. An LPL Financial strategist dismissed the tariff talk as “just a negotiation tool.” (Reuters)
CrowdStrike announced plans to roll out new regional cloud setups in Saudi Arabia, India, and the United Arab Emirates under its Global Data Sovereignty initiative. The company said more locations will be added later. CEO George Kurtz emphasized, “Data sovereignty requirements cannot come at the cost of AI-powered security.” (CrowdStrike)
Simply put, the company aims to keep customers’ security data local but still offer a unified platform across regions. This is crucial for government projects, critical infrastructure, and tightly regulated sectors, where the data’s location can derail a deal before it even gets off the ground.
Cybersecurity stocks dipped across the board. Zscaler dropped around 2.8%, Palo Alto Networks slid about 1.3%, and Fortinet edged down roughly 0.3%.
The risk, as always, lies in execution. Building out cloud infrastructure locally can drag on, face compliance snags, and rack up costs before turning a profit. On days like today, the market pays more attention to rates, politics, and risk appetite than product positioning.
Investors now turn to the macro calendar, eyeing the Personal Consumption Expenditures price index, a key inflation measure the Federal Reserve follows. It’s set for release on Jan. 22. (Bureau of Economic Analysis)
The Federal Reserve’s policy meeting on Jan. 27-28 is next, with the key decision coming Jan. 28. This date often rattles high-multiple software stocks, especially if there’s any change in rate expectations. (Federal Reserve)
