ServiceNow experienced downward pressure and heightened volatility as market participants engaged in tactical de-risking ahead of the company’s third-quarter earnings release scheduled after the market close. Following a substantial rally in prior weeks driven by enthusiasm surrounding enterprise artificial intelligence adoption, the stock entered the session facing elevated valuation scrutiny. With consensus metrics demanding robust subscription revenue, strong current remaining performance obligations growth, and aggressive AI contract expansion, institutional investors opted to lock in recent gains rather than hold high exposure directly into the report.

From a technical and macroeconomic perspective, short-term momentum indicators…