The stock market posted strong gains on Wednesday after Federal Reserve chair Jerome Powell made comments about monetary policy that spurred excitement among investors. With the possibility of interest rate increases slowing in the near future, the Nasdaq Composite (NASDAQINDEX: ^IXIC) jumped out to a gain of more than 4%. On Thursday morning, Nasdaq futures held their own, suggesting the index would hang on to its gains from the previous day.
Many investors have looked for signs of a turnaround in the Nasdaq, and one niche in the market that could provide a good gauge of market sentiment is the software-as-a-service (SaaS) industry. SaaS stocks have generally lost considerable ground over the past year, but the most recent financial results from Okta (NASDAQ: OKTA) and Splunk (NASDAQ: SPLK) suggest that there are some bright spots among software companies that could lead the way in a recovery.
Shares of Okta jumped 18% in premarket trading on Thursday morning. The provider of identity verification services reported third-quarter financial results for the period ended Oct. 31 that showed continued growth and substantial progress toward profitability.
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These 2 Nasdaq SaaS Stocks Are Alive and Well