Arm Holdings and Datadog bucked a broad technology selloff on Tuesday, rising 3.73% and 3.03% respectively, as post-earnings momentum carried both stocks against a tide of rising bond yields that dragged the S&P 500 to a third consecutive losing session. The 30-year Treasury yield briefly topped 5.19%, its highest point in nearly 19 years, squeezing valuations on high-growth names and pushing the Nasdaq Composite 0.84% lower to 25,870.71. The S&P 500 shed 0.67% to close at 7,353.61 while the SOXX semiconductor ETF edged 0.18% higher to 496.74, a modest split verdict for the chip complex on an otherwise difficult macro day.
Arm and Snowflake outpace yield selloff as Nvidia earnings loom, SOXX +0.18%
Arm Holdings rose 3.73% and Datadog gained 3.03% as post-earnings momentum held against rising bond yields, while Palo Alto Networks shed 3% after a 30-session surge. Nvidia reports after the close on May 20.
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Today''s biggest movers
| Ticker | Close | Day | 1mo | YTD |
|---|---|---|---|---|
| $ARM | $223.15 | +3.73% | +27.16% | +94.50% |
| $SNOW | $169.55 | +3.23% | +12.40% | -21.76% |
| $DDOG | $215.15 | +3.03% | +66.41% | +60.84% |
| $NET | $206.73 | +2.47% | -0.45% | +5.46% |
| $INTC | $110.80 | +2.43% | +67.22% | +181.36% |
| $PANW | $240.13 | -3.00% | +37.25% | +33.87% |
| $ORCL | $181.46 | -2.76% | +0.16% | -7.28% |
| $GOOGL | $387.66 | -2.34% | +16.66% | +23.01% |
| $AVGO | $411.07 | -2.29% | +2.21% | +18.25% |
| $AMZN | $259.34 | -2.08% | +3.77% | +14.50% |
Arm rises on post-earnings tailwinds, Wells Fargo target eclipsed
Arm Holdings plc (NASDAQ: ARM) closed at $223.15, up 3.73% and now +94.5% year to date, extending a run of strength that began after the company reported fiscal fourth-quarter 2026 results on May 6. The chip-design firm beat earnings per share estimates by 11%, posting $0.60 against a $0.54 consensus, driven by licensing expansion across mobile, data-center, and automotive customers. Wells Fargo responded by raising its price target on ARM to $220 from $175, maintaining an Overweight rating; Tuesday''s close now sits above that revised target, a sign that near-term momentum has outpaced near-term analyst estimates. Arm''s next results are scheduled for July 29. After the sector pullback that hit ARM earlier this month, see our May 15 recap on the ARM and AMD sell-off for context on the recovery.
Datadog crosses $1 billion in quarterly revenue, stock extends gains
Datadog Inc. (NASDAQ: DDOG) added 3.03% to close at $215.15, as the market continued to price in a landmark first-quarter 2026 earnings report delivered on May 7. Revenue grew 32% year over year to $1.006 billion, the first time the company cleared the $1 billion quarterly threshold, while earnings per share of $0.60 exceeded the $0.42 consensus by 43%. The customer count with annual recurring revenue above $100,000 expanded to roughly 4,550 from about 3,770 a year earlier, a 21% gain that reflects deepening enterprise commitment to Datadog''s observability and AI monitoring platform. Wedbush senior analyst Dan Ives described the result as "stellar" and said the company has "significant room to the upside." Forty-nine analysts tracked by major platforms carry a "Strong Buy" consensus, with an average 12-month price target of $223, a 3.6% premium to Tuesday''s close.
Snowflake gains as traders position ahead of May 27 report
Snowflake Inc. (NASDAQ: SNOW) rose 3.23% to $169.55, the second-largest daily gain in the AI universe on Tuesday, as investors positioned ahead of the company''s upcoming fiscal first-quarter 2027 results expected on May 27. The move follows an exceptional fourth-quarter 2026 beat in which the cloud data platform reported earnings per share of $0.32 against a consensus of negative $0.10, a 420% positive surprise. Despite that performance, the stock remains down 21.76% year to date, among the weakest YTD performers in the universe, leaving meaningful room for recovery if the May 27 numbers sustain the upward trajectory. On the cautious side, Citi trimmed its price target to $260 from $280, and RBC Capital lowered its target to $220 from $245, signaling that near-term upside estimates have moderated even as the fundamental picture improves.
Palo Alto Networks pulls back 3% after a 30-session surge
Palo Alto Networks Inc. (NASDAQ: PANW) fell 3.00% to $240.13, giving back a slice of an extraordinary run that had added roughly 30% over the prior six to seven sessions, lifting the cybersecurity firm''s market capitalization by approximately $38 billion. Analyst Jay Goldberg at Seaport Research offered a note of caution: "As much as the secular AI trend will be a major force, we see many stocks getting ahead of their fundamentals." The longer-term thesis, however, remains well-supported. Oppenheimer maintained an Outperform rating with a $275 price target as recently as May 15, and the company''s second fiscal quarter of 2026 earnings per share of $1.03 topped the $0.94 consensus by nearly 10%. Palo Alto''s fiscal third-quarter 2026 earnings are scheduled for June 2. The stock remains +33.87% year to date. For context on the rally that preceded today''s pullback, see our May 13 recap when PANW led the sector rally.
Notable but quieter
Cloudflare Inc. (NASDAQ: NET) added 2.47% to $206.73, holding a modest 2026 gain of 5.46% as the network-layer AI security play continued to attract buyers. Intel Corp. (NASDAQ: INTC) rose 2.43% to $110.80 in a wide intraday session spanning more than $10; the chip maker remains the strongest year-to-date performer in this universe at +181.36%, though it has pulled back 7.89% over the past five sessions as investors book gains. Broadcom Inc. (NASDAQ: AVGO) fell 2.29% to $411.07 despite a firmly bullish analyst community: Wells Fargo holds an Overweight with a $545 target and Evercore ISI raised its target to $582, both reflecting confidence in Broadcom''s custom AI chip pipeline for the hyperscalers. Alphabet Inc. (NASDAQ: GOOGL) dropped 2.34% to $387.66, tracking the broad selloff in mega-cap technology; the stock is still up 23.01% in 2026. Oracle Corp. (NYSE: ORCL) shed 2.76% to $181.46, tracking the macro move despite Wedbush raising its price target to $275 from $225 and citing the company''s expanding partnership with IBM on AI and hybrid cloud infrastructure. More detail on the broader hyperscaler AI spend picture is in our May 18 recap.
What to watch tomorrow
All attention turns to NVIDIA Corp. (NASDAQ: NVDA) after the close on Wednesday, May 20, when the company reports fiscal first-quarter 2027 results. NVDA closed Tuesday at $220.61, up 16.82% year to date; every AI-adjacent name in this universe is likely to gap at Thursday''s open based on the Nvidia print. Snowflake follows on May 27 and Palo Alto Networks on June 2. Longer-term, the five largest hyperscalers have telegraphed combined data-center capital expenditure that could approach $725 billion, a figure that continues to anchor the bullish case for semiconductor and infrastructure names even on risk-off sessions driven by bond-market stress.
Not investment advice.
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