What Happened?
A number of stocks jumped in the afternoon session after comments from President Trump regarding talks with Iran sparked a broad market rally.
The positive sentiment spread across Wall Street, creating a widespread relief rally with nine out of every ten stocks in the S&P 500 rising. The Dow Jones Industrial Average and the Nasdaq composite both posted gains of around 2%. This risk-on environment, fueled by the perception of reduced geopolitical conflict, often benefits growth-oriented sectors like technology as investors move capital into assets perceived to have higher return potential.
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:
- Design Software company Cadence Design Systems (NASDAQ:CDNS) jumped 4.3%. Is now the time to buy Cadence Design Systems? Access our full analysis report here, it’s free.
- Communications Platform company Twilio (NYSE:TWLO) jumped 2.6%. Is now the time to buy Twilio? Access our full analysis report here, it’s free.
- Banking Software company nCino (NASDAQ:NCNO) jumped 3.1%. Is now the time to buy nCino? Access our full analysis report here, it’s free.
- Communications Platform company Bandwidth (NASDAQ:BAND) jumped 7.1%. Is now the time to buy Bandwidth? Access our full analysis report here, it’s free.
- Data Infrastructure company C3.ai (NYSE:AI) jumped 3.6%. Is now the time to buy C3.ai? Access our full analysis report here, it’s free.
Zooming In On Bandwidth (BAND)
Bandwidth’s shares are very volatile and have had 21 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 20 days ago when the stock gained 4% on the news that investors appeared to buy the dip amid heightened uncertainty triggered by resurgent inflation fears and escalating geopolitical tensions.
When an entire sector gets beaten down, even modest buying pressure can create outsized moves as short sellers cover and value buyers step in. Following double-digit declines across most names, the rebound suggests investors are shifting from blind fear to a more nuanced view as they monitor the market for "AI Winners.".
Bandwidth is up 16.7% since the beginning of the year, but at $16.59 per share, it is still trading 9.3% below its 52-week high of $18.29 from September 2025. 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 $131.22.
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