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.
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. Reuters
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.
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.
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.
