Stocks edged lower on Thursday, with investors weighing the latest batch of corporate earnings against a geopolitical backdrop fraught with tensions among the U.S., Israel and Iran.
Software stocks were among the worst-performing in the S&P 500 index. Investors remain skeptical of the sector, concerned that the industry could be disrupted by the advent of artificialintelligence tools. On Thursday, ServiceNow plunged 18% after the cloud-based software company cut its projection for operating margin.
“Anything that is adjacent to software or SaaS as a whole is getting dragged,” said Clayton Allison, portfolio manager at Prime Capital Financial, referring to software-as-a-service. “Right now, software is in the penalty box.”
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