Snowflake Inc ( SNOW ) shares are trading lower, pulling back from a broad market surge on Wednesday that lifted stocks across the board. The company on Thursday announced that it received Department of Defense (DOD) Impact Level 5 (IL5) authorization.

What To Know: Snowflake on Thursday announced it received DOD IL5 Provisional Authorization on AWS GovCloud US-West. The authorization enables the company to offer solutions requiring the highest levels of protection for Controlled Unclassified Information.

In connection with the authorization, Snowflake will allow the DOD to leverage advanced data analytics and generate AI-driven insights on Snowflake’s platform. Snowflake noted that the announcement comes after the company expanded its government-focused operations with the launch of subsidiary Snowflake Public Sector, Inc.

“The Department of Defense’s mission to enhance readiness and drive innovation demands secure, data-centric solutions. Achieving IL5 authorization underscores Snowflake’s commitment to providing these solutions to Servicemembers, customers, and industry partners,” said Matthew Rose, Head of Corporate Government Relations at Snowflake.

Snowflake listed several potential mission-critical applications for the company’s IL5 authorization including financial management, enterprise business operations, logistics and supply chain, cybersecurity and open source intelligence.

Check This Out: Tech Sector Entering A Period Of ‘Mass Uncertainty’ Amid Tariffs And Upcoming Earnings Season, Says Dan Ives: ‘The Damage Is Real’

Snowflake shares are moving lower on Thursday, pulling back from a strong rally on Wednesday, driven by the Trump administration’s 90-day pause on reciprocal tariffs. The announcement came hours after President Donald Trump’s sweeping reciprocal tariffs went into effect.

Snowflake shares soared from around the $132 level to above $150 on Wednesday as the S&P 500 recorded its largest one-day gain since 2008. Broader markets are pulling back Thursday following Wednesday’s strong surge.

SNOW Price Action: Snowflake stock was down about 5.06% at $143.50 at the time of publication Thursday, per Benzinga Pro.