What Happened?
A number of stocks jumped in the afternoon session after the Bureau of Labor Statistics reported that the July Producer Price Index was completely flat month-over-month—coming in below expectations for a 0.2% increase—following the Consumer Price Index print (released earlier in the week) which showed a mild 0.1% monthly increase and an annual inflation rate cooling to 3.4%. Together, the data points suggest price pressures are moderating across both wholesale and consumer levels, taking the urgency out of the Federal Reserve's "higher for longer" rate stance.
For the software and data analytics sector, macroeconomic data often overrides individual company fundamentals on days without earnings. Software companies are generally valued on cash flows expected many years in the future, making them long-duration assets that are highly sensitive to the discount rate used to value those future dollars. When inflation cools, bond yields typically fall as markets price in a less aggressive Federal Reserve.
A lower risk-free rate mathematically boosts the present value of future software earnings, triggering an automatic multiple expansion across the sector.
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:
- E-commerce Software company Wix (NASDAQ: WIX) jumped 5.5%. Is now the time to buy Wix? Access our full analysis report here, it’s free.
- Advertising Software company AppLovin (NASDAQ: APP) jumped 1.9%. Is now the time to buy AppLovin? Access our full analysis report here, it’s free.
- Vertical Software company Manhattan Associates (NASDAQ: MANH) jumped 0.4%. Is now the time to buy Manhattan Associates? Access our full analysis report here, it’s free.
- Data Analytics company Strategy (NASDAQ: MSTR) jumped 0.6%. Is now the time to buy Strategy? Access our full analysis report here, it’s free.
- Data Infrastructure company Oracle (NYSE: ORCL) jumped 0.8%. Is now the time to buy Oracle? Access our full analysis report here, it’s free.
Zooming In On Wix (WIX)
Wix’s shares are extremely volatile and have had 38 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 gained 5.9% on the news that the company announced the launch of Symphony by Wix, a new AI agent platform designed for businesses. Symphony by Wix is a standalone platform created to help individuals and small businesses manage and grow operations by using a team of tailored AI agents.
These agents can understand context, plan work, and take action to streamline business processes.
The new platform follows other AI-powered features intended to drive higher user monetization.
Wix is down 27.1% since the beginning of the year, and at $73.57 per share, it is trading 60.1% below its 52-week high of $184.24 from September 2025. Investors who bought $1,000 worth of Wix’s shares 5 years ago would now be looking at only $358.00.
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