2023-04-26 11:49:57 ET
For good or for bad, the state of the economy has dominated the headlines in recent months and has been the primary market driver thus far in 2023. Market watchers and the Federal Reserve alike have been watching closely for signs of an impending recession, and while talk of a mild downturn has increased in recent weeks, investors have been hopeful for a so-called "soft landing," with the economy sidestepping a recession. However, the quarterly results of a couple of prominent cloud providers gave the clearest indication yet that the expected downturn may yet be avoided.
With that as a backdrop, Cloudflare (NYSE: NET) rose 5.2%, Snowflake (NYSE: SNOW) climbed 8.1%, MongoDB (NASDAQ: MDB) jumped 11.2%, and Datadog (NASDAQ: DDOG) rallied 14% as of 11:10 a.m. ET on Wednesday.
A check of all the usual sources -- regulatory filings, earnings results, and changes to analysts' targets -- turned up nothing in the way of company-specific news driving these cloud stocks higher today. This seems to support the conclusion that investors are reacting to the possibility that the economy might actually be headed for better days and the worst of the bear market could be in the rearview mirror.
For further details see:
Why Cloudflare, Snowflake, MongoDB, and Other Cloud Stocks Rallied Wednesday Morning