Stocks Plunge as Middle East Tensions Fuel Inflation Fears

The stock market declined on Tuesday after Israel and U.S. jets launched new airstrikes on Iran, escalating Middle East tensions and triggering investor concerns around rising inflation, surging oil prices and potential global energy supply disruptions.

Overall, S&P 500 fell 0.9% to 6,817, while NASDAQ dropped 1.0% to 22,517.

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Here is the ten-year chart of ServiceNow (NOW) as of February 10, 2026, when the stock was at $106.

ServiceNow stock has lost around half its value in the past two quarters on concerns cheaper AI software will eat into its business.

Our take is AI software isn’t on ServiceNow’s level yet, and it will be years before it gets there. Big companies and government organizations aren’t going to trust new AI software for mission critical operations.

Meanwhile, ServiceNow is positioned as the AI control tower for business innovation, and is implementing AI into its own software. These tools help companies automate IT systems, protect digital assets, manage customer relationships, and run internal processes more efficiently.

NOW is a core holding in the Growth Portfolio. It is utilizing AI to capture business.

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