What Happened?

A number of stocks jumped in the morning session after investors moved to buy the dip in SaaS names that had become significantly oversold amid a fragile market rebound driven by cautious optimism surrounding U.S.-Iran ceasefire talks. 

While the Dow Jones Industrial Average retreated under the weight of a spike in oil prices and the naval blockade of the Strait of Hormuz, traders hunted for value in software leaders. Market participants increasingly decoupled cloud-native business models from the physical logistical nightmares and soaring fuel costs straining the broader economy. This "buy the dip" conviction was further catalyzed by high-profile analyst support for sector leaders like ServiceNow. Bernstein reiterated an "Outperform" rating, framing the company as a foundational AI agent platform with an impenetrable moat in business process automation.

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:

• Advertising Software company Zeta Global (NYSE: ZETA) jumped 3%. Is now the time to buy Zeta Global? Access our full analysis report here, it’s free.
• Data Infrastructure company Teradata (NYSE: TDC) jumped 4.9%. Is now the time to buy Teradata? Access our full analysis report here, it’s free.
• Data Analytics company CLEAR Secure (NYSE: YOU) jumped 3.4%. Is now the time to buy CLEAR Secure? Access our full analysis report here, it’s free.

Zooming In On Teradata (TDC)

Teradata’s shares are somewhat volatile and have had 11 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 biggest move we wrote about over the last year was about 2 months ago when the stock dropped 10.5% on the news that investors continued to distinguish between the winners and losers in the artificial intelligence boom, leading to a broad sell-off. 

The Nasdaq fell 1.5%, while the S&P 500 and Dow Jones Industrial Average also saw significant declines. This market shift indicated that investors were becoming more selective, moving beyond the initial excitement surrounding AI. 

In addition, a stronger-than-expected U.S. jobs report dampened investor expectations for near-term interest rate cuts from the Federal Reserve. Data showed the U.S. labor market remained resilient, with non-farm payrolls indicating impressive job creation and falling unemployment. 

This positive economic signal led markets to re-evaluate the timeline for monetary policy easing, which is the process by which a central bank reduces interest rates to stimulate economic growth. Investors priced in the first potential rate cut for July, a shift from previous expectations of June. This delay created a headwind for growth-oriented sectors like software, as higher interest rates can reduce the present value of future earnings.

Teradata is down 12.6% since the beginning of the year, and at $25.96 per share, it is trading 31.5% below its 52-week high of $37.88 from February 2026. Investors who bought $1,000 worth of Teradata’s shares 5 years ago would now be looking at only $654.44.

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