New York, Feb 9, 2026, 5:49 PM EST — Trading after the bell
- ServiceNow climbed roughly 3% after hours, mirroring gains across the software sector.
- Options markets are still betting on big moves, and the sector’s volatility hasn’t let up.
- Attention moves to U.S. payrolls set for Wednesday, with inflation numbers due Friday.
ServiceNow climbed 3.1% to $103.87 in late U.S. trading Monday, picking up $3.16 on the day. Shares swung between $98.69 and $104.24 during a session marked by plenty of ups and downs.
Software stocks have been hammered since the S&P 500 technology sector topped out in late October, leaving several big players deep in the red. ServiceNow and AppLovin? Both down more than 40% during that span, as investors wrestle with the question of whether rapidly advancing AI will undercut the lucrative subscription setup that’s long driven the sector. 1
Tech stocks picked up a bid again Monday. Reuters noted the S&P 500’s software services index put up a 2.9% gain, with the broader tech sector adding 1.6%. “A sharply oversold market where a little bit of good news can go a long way,” Truist Advisory Services CIO Keith Lerner said. Oracle’s post-upgrade move fueled broader optimism, as investors eyed key U.S. data scheduled for later in the week. 2
ServiceNow’s gains don’t come on the back of any new announcement from the company. It’s mostly a positioning story. Investors have been rotating out of long-duration growth names, and software, of course, sits right in the middle of that shift.
There’s a camp of investors now pushing back, saying the selloff moved too quickly—particularly for big, profitable platforms with loyal enterprise customers. But skepticism lingers; plenty still aren’t buying that the worst is over.
Caution lingers in the options market. Implied volatility for the next 30 days on the iShares Expanded Tech-Software Sector ETF is holding near 41%, just under its recent peak, according to Reuters. 1
Shorts aren’t backing off. Ortex Technologies figures, as reported by Reuters, put short interest in the ETF at roughly 19% of the free float as of Thursday. That kind of positioning leaves the door wide open for sudden swings if momentum shifts. 1
The risk is clear enough. A stronger inflation number or payrolls shock can easily push back rate-cut expectations, with high-multiple software stocks usually getting clipped first. A fresh wave of nerves over AI-driven rivals wouldn’t do those names any favors either.
Traders are eyeing whether Monday’s uptick keeps momentum through Tuesday, but their bigger focus comes later: the January U.S. payrolls report lands Wednesday, followed by Friday’s consumer price index. Both could sway how markets are reading the path for rates. 2
