What Happened?
A number of stocks traded in opposite directions in the afternoon session after software equities broadly gained momentum following a pullback in treasury yields and second-quarter financial results from Snowflake.
Lower Treasury yields supported the move after Fed Governor Christopher Waller signaled support for keeping rates steady. The 10-year yield fell to 4.756%, while the 2-year yield declined to 4.328%, according to CNBC. Because software valuations are heavily based on cash flows expected years into the future, lower yields reduce the discount rate applied to those earnings and can increase the value investors assign to the group today.
Snowflake surged after reporting earnings and increasing its forward outlook, sparking widespread optimism across the enterprise software industry. Taking a closer look at the quarter, SNOW’s revenue reached $1.55 billion, up 35% year on year, driven by product revenue of $1.48 billion, which grew 37%, the company reported in an official press release. The upbeat report bolstered investor sentiment regarding enterprise tech demand and software spending.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Tax Software company BlackLine (NASDAQ: BL) jumped 4.4%. Is now the time to buy BlackLine? Access our full analysis report here, it’s free.
- Marketing Software company Upland Software (NASDAQ: UPLD) fell 4.4%. Is now the time to buy Upland Software? Access our full analysis report here, it’s free.
- Advertising Software company Zeta Global (NYSE: ZETA) jumped 4.6%. Is now the time to buy Zeta Global? Access our full analysis report here, it’s free.
- Data Infrastructure company Oracle (NYSE: ORCL) jumped 5.4%. Is now the time to buy Oracle? Access our full analysis report here, it’s free.
- Identity Management company Okta (NASDAQ: OKTA) jumped 3.5%. Is now the time to buy Okta? Access our full analysis report here, it’s free.
Zooming In On Oracle (ORCL)
Oracle’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 5.4% on the news that escalating geopolitical tensions in the Middle East and climbing global bond yields dampened investor risk appetite.
Bloomberg reported renewed conflict between the U.S. and Iran in the Strait of Hormuz pushed crude oil prices sharply higher, reviving inflation concerns across global markets. At the same time, Bloomberg also reported global government bond yields reached multiyear highs as investors weighed the growing likelihood of a Federal Reserve interest rate hike in September.
Rising Treasury yields present significant headwinds for equity markets, particularly for high-valuation growth sectors, as higher borrowing costs can compress corporate profit margins and make fixed-income alternatives more appealing. Coupled with surging energy costs and macroeconomic uncertainty, the shift in interest rate expectations prompted broad-based selling across equity indices.
Oracle is down 21.6% since the beginning of the year, and at $153.37 per share, it is trading 53.3% below its 52-week high of $328.33 from September 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Oracle’s shares 5 years ago would now be looking at an investment worth $1,704.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
