What Happened?

A number of stocks jumped in the afternoon session as market benefited from a "risk-on" market sentiment fueled by potential peace negotiations between the U.S. and Iran. 

As geopolitical tensions eased, investors returned to growth-heavy favorites like Microsoft and ServiceNow, which offer high-margin subscription revenue and clearer paths for integrating generative AI into enterprise workflows.

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:

• Lending Software company Upstart (NASDAQ: UPST) jumped 11.9%. Is now the time to buy Upstart? Access our full analysis report here, it’s free.
• Project Management Software company Asana (NYSE: ASAN) jumped 7.8%. Is now the time to buy Asana? Access our full analysis report here, it’s free.
• Data Analytics company Domo (NASDAQ: DOMO) jumped 11%. Is now the time to buy Domo? Access our full analysis report here, it’s free.

Zooming In On Upstart (UPST)

Upstart’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. But moves this big are rare even for Upstart and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 2.7% on the news that the tech-heavy Nasdaq surged in response to the de-escalation of the U.S.-Iran conflict. Software stocks participated in the broad market rally as investors exited their defensive postures and returned to high-growth assets. The ceasefire lowered overall market volatility, creating a more stable backdrop for enterprise spending and corporate investment. The software sector benefits from the "risk-on" environment because lower geopolitical tension often leads to a more favorable valuation for growth-oriented companies. Furthermore, as the threat of energy-induced inflation fades, the macro pressure on interest rates, which often weighs on tech valuations, is reduced.

Upstart is down 27.9% since the beginning of the year, and at $33.05 per share, it is trading 60.7% below its 52-week high of $84.13 from July 2025. Investors who bought $1,000 worth of Upstart’s shares 5 years ago would now be looking at only $299.34.

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