Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors.
However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
Shares of cloud monitoring platform Datadog (NASDAQ:DDOG) fell 3.1% in the afternoon session after a broad-based sell-off impacted the technology sector.
Shares of cloud monitoring platform Datadog (NASDAQ:DDOG) jumped 5.8% in the morning session after positive sentiment swept through the cloud software sector following strong quarterly earnings from several of its peers.
Stay informed about the performance of the S&P500 index in the middle of the day on Thursday. Uncover the top gainers and losers in today's session for valuable insights.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Stay informed about the performance of the S&P500 index one hour before the close of the markets on Wednesday. Uncover the top gainers and losers in today's session for valuable insights.
Let's have a look at what is happening on the US markets in the middle of the day on Wednesday. Below you can find the top S&P500 gainers and losers in today's session.
A number of stocks fell in the morning session after markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.
Datadog’s second quarter was defined by strong customer adoption of its cloud monitoring platform, particularly among AI-native businesses. Management credited higher usage growth from both existing and new customers, with AI-native companies contributing a rising share of revenue. CEO Olivier Pomel pointed to “rapid usage growth with their [AI-native customers’] products,” as well as steady demand across other customer groups. The quarter also saw increased product adoption, with a notable uptick in multi-product usage and strong traction for security offerings. Despite surpassing analyst expectations, management acknowledged the potential for volatility in usage patterns among large AI customers.
