Software Stocks Bear Market: AI Fears Sink ServiceNow - News Directory 3

Software Stocks Bear Market: AI Fears Sink ServiceNow

January 29, 2026 Victoria Sterling Business
News Context
At a glance
  • signage ⁣during the Nvidia GPU Technology⁤ Conference in San Jose, California, on March 20, 2025.
  • Software stocks ‍on Thursday ⁣slid deeper into an ongoing⁤ intense sell-off this⁢ year as investors recoiled from the sector on growing fears that artificial intelligence⁢ could upend many...
  • The iShares Expanded Tech-Software Sector ETF (IGV) dropped about 5% in morning trading, on pace for its ‍biggest one-day decline as last April during the ⁢tariff-triggered downturn.The fund...
Original source: cnbc.com

ServiceNow Inc. signage ⁣during the Nvidia GPU Technology⁤ Conference in San Jose, California, on March 20, 2025.

David Paul Morris | Bloomberg | getty ⁤Images

Software stocks ‍on Thursday ⁣slid deeper into an ongoing⁤ intense sell-off this⁢ year as investors recoiled from the sector on growing fears that artificial intelligence⁢ could upend many ⁢firms’ business models.

The iShares Expanded Tech-Software Sector ETF (IGV) dropped about 5% in morning trading, on pace for its ‍biggest one-day decline as last April during the ⁢tariff-triggered downturn.The fund is now down about ⁢21% ⁣from ⁣its recent high, ⁤pushing the software industry⁢ into bear-market territory and⁢ underscoring how quickly sentiment has turned ⁣against one of wall Street’s former favorite industries.

Month to date, ⁢IGV is down almost 14%, on pace for worst month as october 2008 when the fund fell 23%.

Stock chart IconStock chart iconThe Inflation Reduction ⁣Act and Prescription ⁣Drug Pricing

Table of Contents

The ⁤inflation Reduction Act of 2022 granted Medicare the authority to negotiate prices for certain high-expenditure prescription drugs, a landmark change aimed at lowering healthcare costs⁣ for⁤ seniors. This negotiation process began in 2023, with the first negotiated⁢ prices taking effect in 2026.

How⁣ Medicare Drug price Negotiation Works

The Inflation Reduction Act allows Medicare to⁣ negotiate the prices of 60 drugs‍ – 20 drugs starting in 2026,⁢ an additional 20 in 2027, and another 20 ⁢in ⁢2028 – covered ⁣under Medicare Part D and Part B. Drugs eligible for negotiation are those lacking generic or biosimilar competition and represent the highest total costs ⁤to Medicare.

The Centers for ‍Medicare & Medicaid Services (CMS) ⁤released guidance on the negotiation process in August 2023, outlining‍ the selection criteria, negotiation timelines, and potential⁤ penalties for ‍drug manufacturers who refuse ⁣to participate. Negotiations occur between CMS and the⁤ drug manufacturers,with the goal of reaching an agreed-upon maximum fair price.

Example: In February 2024, CMS⁤ announced the first 10 ⁤drugs selected‍ for⁢ negotiation, including medications for diabetes, heart failure, and blood clots.⁣ A full list of thes‍ drugs is available on the CMS website.

Drugs Initially Selected for Negotiation‍ (2026)

The initial 10 drugs selected for price negotiation represent significant spending for medicare. These drugs treat a range of conditions and include:

  • eliquis (apixaban) -⁣ an anticoagulant
  • Xarelto (rivaroxaban) – an anticoagulant
  • Januvia (sitagliptin) – for type 2 diabetes
  • Farxiga (dapagliflozin) – for ⁢type 2 diabetes and heart failure
  • Entresto (sacubitril/valsartan) – ⁤for heart ⁢failure
  • Imbruvica (ibrutinib) – for blood cancers
  • Stelara (ustekinumab) – for ‍autoimmune disorders
  • Revlimid (lenalidomide) – for multiple myeloma
  • Fiasp/NovoLog (insulin aspart) – for diabetes
  • Xigduo XR (dapagliflozin/metformin) – for type 2⁢ diabetes

The negotiated prices for these drugs will be ⁢published ‍by CMS in September ⁤2024 and will go⁢ into effect ⁤on January 1, 2026. CMS estimates⁢ these negotiations will save Medicare and beneficiaries billions of dollars over the next decade.

Potential ⁤Impact and Legal ‍Challenges

The Inflation Reduction Act’s drug price negotiation provision is projected to reduce‍ federal⁤ spending by nearly $100 billion‍ over ten years,according to the ⁤Congressional Budget Office. However, the law⁣ has faced legal challenges from⁣ the pharmaceutical industry.

Several pharmaceutical companies,

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