What Happened?
A number of stocks jumped in the afternoon session after the Nasdaq rebounded, up 1.8%, as Trump's Iran peace deal announcement released the rate pressure that weighed on the sector.
Oil prices fell more than 3% following the cancellation of planned strikes on Iran, easing the inflation pressure that had been driving rate hike expectations. The 10-year Treasury yield fell to 4.47% from 4.55%, a move that expands the forward earnings multiples tech stocks trade on. Every basis point of yield reduction matters more to a company priced on earnings years into the future than to almost any other sector. The combination of lower oil, lower yields, and geopolitical risk being removed from global supply chains was precisely the backdrop tech needed to recover after three consecutive sessions of selling.
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:
- Communications Platform company Bandwidth (NASDAQ: BAND) jumped 4.6%. Is now the time to buy Bandwidth? Access our full analysis report here, it’s free.
- Data Storage company Commvault (NASDAQ: CVLT) jumped 2.6%. Is now the time to buy Commvault? Access our full analysis report here, it’s free.
Zooming In On Bandwidth (BAND)
Bandwidth’s shares are extremely volatile and have had 32 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 6.3% on the news that Anthropic released new models (Claude Fable 5 and Claude Mythos 5) which were described as built for "the hardest knowledge work and coding problems."
Mythos had been restricted for roughly two months under Project Glasswing, a managed rollout to select governments and enterprises designed to contain its cybersecurity risk profile before a wider release. That matters because the SaaSpocalypse thesis gets reinforced every time a more capable AI agent arrives. When Anthropic launched Claude Cowork in January, it triggered a $285 billion rout in software stocks in a single session, with Goldman's US software basket falling.
This is another iteration of the same logic: if an agent available for $20 a month can now complete long-run, multi-step knowledge work, the case for more expensive per-seat enterprise subscriptions gets harder to defend with each new model generation. Adding to the weakness, US Central Command confirmed an American Apache helicopter had gone down near the coast of Oman, and Trump said the US "must respond" to what he described as an Iranian attack over the Strait of Hormuz.
The Apache helicopter incident gave the software sector a macro headwind on top of those pressures. Software is a long-duration asset, its valuation is rooted in future cash flows, making it particularly exposed to any development that firms up the case for sustained higher interest rates. An Iranian attack on US military assets over the Strait of Hormuz is precisely that kind of development.
Bandwidth is up 349% since the beginning of the year, but at $63.85 per share, it is still trading 12.8% below its 52-week high of $73.19 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Bandwidth’s shares 5 years ago would now be looking at only $502.73.
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