ServiceNow Jumps 5% After 8% Rally, Gains 3.8% Premarket
NOW•ServiceNow shares rose 3.8% in Tuesday premarket trading, following an 8% gain on Monday, and extended those gains with a 5% jump on the day. Investors are rotating from chip stocks, which are up 55% year-to-date, into beaten-down enterprise software, driving the tech-software ETF toward a fourth straight gain.
1. Sector Rebound Boosts Software Stocks
U.S. software equities rallied as investors reassessed the impact of AI on legacy platforms, lifting the broader tech-software ETF toward its fourth consecutive gain. Shares of major enterprise software names ticked higher in premarket trading as sentiment stabilized after months of underperformance.
2. ServiceNow's Strong Performance
ServiceNow led the sector with an 8% surge on Monday and added a further 3.8% in Tuesday premarket trading. The stock then climbed an additional 5% during the session as market participants bought into its AI-driven productivity positioning.
3. Investor Rotation and ETF Trends
Chip stocks have outperformed with a 55% year-to-date gain, prompting a shift of capital into undervalued software names. This rotation fueled demand for enterprise software stocks and supported the tech-software ETF's multi-day advance.
