SNOW - Why Appian Snowflake and Shopify All Stumbled Today
2023-04-05 18:23:00 ET
Shares of cloud software companies, including Appian (NASDAQ: APPN) , Snowflake (NYSE: SNOW) , and Shopify (NYSE: SHOP) , were all moving lower today as downbeat economic data raised fears of a recession and sparked a sell-off in high-growth, tech stocks like these three.
Among the reports released was the ADP monthly payrolls, which showed that just 145,000 private-sector jobs were added in March, lower than estimates of 210,000 and down from 261,000 in February. In particular, the financial sector and professional- and business-services sectors were weak, losing 51,000 and 46,000 jobs, respectively. This seems to reflect the banking crisis, planned layoffs, and a decline in business activity that's consistent with the arrival of a recession.
Growth in annual pay also slowed from 7.2% to 6.9%, which could help put the brakes on inflation. Investors will get the official jobs report on Friday, April 7, though the stock market will be closed that day for Good Friday.
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Why Appian, Snowflake, and Shopify All Stumbled Today