NEW YORK, January 3, 2026, 05:06 ET — Market closed
- ServiceNow shares ended Friday down 3.75% at $147.45, marking a third straight daily decline.
- Software stocks lagged even as the broader market held up, with the IGV software ETF down about 2.9%.
- Investors are now watching next week’s U.S. jobs and inflation reports for clues on interest rates.
ServiceNow, Inc. (NOW) shares closed down 3.75% at $147.45 on Friday, after trading between $145.65 and $154.69. About 9.9 million shares changed hands.
The move tracked weakness across software stocks, with the iShares Expanded Tech-Software Sector ETF — an exchange-traded fund, or ETF, that trades like a stock — down about 2.9% on the day.
Broader U.S. indexes were mixed on the first trading day of 2026, as investors returned from holiday-thin trading and looked ahead to a busy January calendar. “The market is looking for direction,” said Matthew Maley, chief market strategist at Miller Tabak. Reuters
ServiceNow’s drop still beat some peers. Salesforce fell 4.26% while Oracle edged higher, and ServiceNow ended the session about 38% below its 52-week high, MarketWatch data showed.
High-growth software names can react sharply to shifts in rates because more of their value rests on profits expected years out. Treasury yields moved higher as 2026 began, a backdrop that can pressure richly valued technology shares.
Company-specific headlines have also lingered in the background. ServiceNow agreed in December to buy cyber-exposure firm Armis for about $7.75 billion in cash and said it expects to fund the deal with a mix of cash on hand and debt, with closing targeted for the second half of 2026.
A separate SEC filing showed ServiceNow amended CEO William McDermott’s employment agreement, effective Jan. 1, confirming he will remain in service through at least Dec. 31, 2030, and updated its severance policy for the role.
Macro data is the nearer-term swing factor for rate-sensitive tech. The U.S. jobs report for December is due Jan. 9 at 8:30 a.m. ET, according to the Bureau of Labor Statistics.
Inflation follows quickly. The BLS calendar shows the consumer price index report for December is scheduled for Jan. 13, also at 8:30 a.m. ET.
The Federal Reserve’s next policy meeting runs Jan. 27-28, putting fresh attention on how many rate cuts remain after late-2025 easing.
Before the next session on Monday, traders will watch whether software stocks can regain footing after IGV slipped below its 200-day moving average on Friday. That moving average is a widely watched long-term trend line that can influence systematic, rules-based trading.
ServiceNow’s next major company catalyst is its quarterly report. MarketChameleon estimates the company will release earnings between Jan. 22 and Jan. 29, and investors will focus on subscription growth and any update on financing and integration plans tied to the Armis deal.
