What Happened?
A number of stocks fell in the afternoon session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
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:
- Video Conferencing company Five9 (NASDAQ:FIVN) fell 5.7%. Is now the time to buy Five9? Access our full analysis report here, it’s free.
- Data Storage company Snowflake (NYSE:SNOW) fell 6.7%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free.
- Automation Software company SoundHound AI (NASDAQ:SOUN) fell 4%. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.
- Advertising Software company PubMatic (NASDAQ:PUBM) fell 5.5%. Is now the time to buy PubMatic? Access our full analysis report here, it’s free.
- Endpoint Security company CrowdStrike (NASDAQ:CRWD) fell 3.6%. Is now the time to buy CrowdStrike? Access our full analysis report here, it’s free.
Zooming In On Snowflake (SNOW)
Snowflake’s shares are quite volatile and have had 16 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 1 day ago when the stock gained 3.3% as a string of impressive earnings reports from industry leaders pointed to resilient growth. Leading the charge was Microsoft, which neared a $4 trillion valuation after reporting booming sales in its Azure cloud division and forecasting record spending. This positive momentum was echoed elsewhere in the sector. PTC Inc. shares jumped on a 24% revenue increase driven by its AI-powered portfolio and raised its full-year outlook. Similarly, F5 Networks and BigCommerce both surpassed analyst expectations for revenue and earnings. The optimism extended to ad-tech, where AppLovin gained on investor confidence in its AI-driven advertising solutions, showcasing broad strength in specific software niches.
Snowflake is up 30.5% since the beginning of the year, and at $205.49 per share, it is trading close to its 52-week high of $225.79 from July 2025. Investors who bought $1,000 worth of Snowflake’s shares at the IPO in September 2020 would now be looking at an investment worth $809.51.
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