ServiceNow erases gains as software rebound cools
Quick Take
ServiceNow's stock declines as the software market's recovery loses momentum.
Key Points
- ServiceNow's recent gains have been wiped out.
- The software sector shows signs of cooling.
- Investors are cautious amid market fluctuations.
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What happened: ServiceNow (NOW) erased earlier gains on Tuesday after an 8% jump in the prior session.
What’s behind the move: The stock fell nearly 1%, reversing course from earlier in the session, when investors rotated out of high-flying semiconductor plays and into enterprise software. Shares of Salesforce (CRM), Snowflake (SNOW), Adobe (ADBE), and Workday (WDAY) also trimmed gains.
The Tech-Software Sector ETF (IGV) was on pace to snap three straight days of gains.
NYSE - Nasdaq Real Time Price USD
102.65 -0.78 (-0.75%)
As of 2:20:46 PM EDT. Market Open.
NOW IGV CRM
What else do you need to know: Over the past several sessions, investors grew more bullish on companies viewed as direct beneficiaries of artificial intelligence-driven productivity gains. ServiceNow and other software firms have been aggressively promoting the integration of generative AI tools into their platforms.
The recent rally marks a sharp reversal from earlier this year, when ServiceNow and other software stocks came under pressure amid fears that artificial intelligence could disrupt traditional software business models.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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— Originally published at finance.yahoo.com
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