What happened: ServiceNow (NOW) stock jumped 5% on Tuesday, extending 8% gains from the prior session.
What’s behind the move: The stock rebounded along with the rest of the sector as investors rotated out of high-flying semiconductor plays and into beaten-down enterprise software names. Shares of Salesforce (CRM), Snowflake (SNOW), Adobe (ADBE), and Workday (WORK) also rebounded.
The Tech-Software Sector ETF (IGV) was on pace for a fourth straight day of gains, while the broader market has been in decline since Friday.
What else do you need to know: 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 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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