What Happened?
A number of stocks jumped in the afternoon session after yields fell as the Trump administration announced a new peace deal that would lead to the reopening of the Strait of Hormuz.
Software companies are among the most sensitive to long-term interest rates because their valuations depend on earnings projected years ahead. The discount rate applied to those forward cash flows is derived from the risk-free rate, in practice, the 10-year Treasury yield.
When that yield drops to 4.41%, its lowest since mid-May, valuations across the sector improve without a single new contract being signed. Beyond the rate mechanics, the macro improvement matters for enterprise software specifically: customers who had deferred purchasing and renewal decisions during the period of geopolitical uncertainty now face a more settled planning environment.
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:
- Project Management Software company Atlassian (NASDAQ: TEAM) jumped 5.3%. Is now the time to buy Atlassian? Access our full analysis report here, it’s free.
- Vulnerability Management company Tenable (NASDAQ: TENB) jumped 4.8%. Is now the time to buy Tenable? Access our full analysis report here, it’s free.
- Data Storage company Snowflake (NYSE: SNOW) jumped 4.5%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free.
Zooming In On Atlassian (TEAM)
Atlassian’s shares are extremely volatile and have had 37 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 6 days ago when the stock dropped 2.9% 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.
Atlassian is down 39.9% since the beginning of the year, and at $93.05 per share, it is trading 57.9% below its 52-week high of $220.89 from July 2025. Investors who bought $1,000 worth of Atlassian’s shares 5 years ago would now be looking at only $378.57.
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