Palantir Technologies was pacing toward its worst day in seven months on Wednesday in the absence of any appreciable news. It was far from the only software stock taking a beating.

Palantir shares dropped 6.6% to $168.01 during the session, putting them on track for their largest single-day percent decline since a nearly 12% drop on Feb. 4, according to Dow Jones Market Data.

The slump mirrored a broader selloff in software stocks against the backdrop of rising bond yields and elevated oil futures. Palo Alto Networks was the worst performer in the S&P 500 on Wednesday, falling more than 10%.

Sector peers followed suit: Datadog, Fortinet, CrowdStrike, and ServiceNow were among the biggest losers in the benchmark index on Wednesday, falling more than 4% each.

Palantir remains vulnerable to pullbacks given its lofty valuation, which peaked above 240 times forward earnings late last year. As of Tuesday, Palantir was trading at a forward price-to-earnings ratio of 87.59, compared with 19.43 for the benchmark S&P 500 and 21.96 for the tech-heavy Nasdaq Composite.

There was little other company-specific news on Wednesday, save for the appointment of Peter Zaffino, former executive chairman of American International Group, to lead Palantir's financial services division. Zaffino will step down from AIG's board and step into his new role in January, Palantir said.

The decline on Wednesday followed a stellar August, when Palantir surged 51% to become one of the S&P 500's top performers for the month.

That momentum followed Palantir's blowout second-quarter earnings report on Aug. 3, which showcased a spike in customer demand that included U.S. sales more than doubling. Shares got another boost late in the month as the broader software sector charged higher.