Market update: mixed sector performance

What happened: ServiceNow (NOW) underperformed the technology sector, with a market cap of $128.2 billion, as its stock price fell due to concerns about growth prospects. Meanwhile, markets remained mixed, with tech stocks generally down, and energy stocks driving the TSX higher. Healthcare stocks outperformed, while energy and cybersecurity stocks dragged indices lower.

Market impact: Tech stocks, particularly those focused on AI development, faced pressure, impacting the Nasdaq. Energy producers and related stocks influenced the broader market, with the S&P 500 and Dow Jones Industrial Average moving in opposite directions. Healthcare stocks, seen as defensive plays, attracted investors, leading to outperformance.

What to watch next: Micron's earnings report on June 30, which could influence tech stocks' performance, and the ongoing Middle East conflict, as any developments could impact oil prices and energy stocks. Additionally, investors should monitor the rotation into defensive sectors like healthcare, as this trend may continue based on analysts' expectations.