Cooler inflation readings boost high-multiple tech stocks, lifting CrowdStrike and Palo Alto shares without company-specific news.
CrowdStrike Holdings (NASDAQ:CRWD) rose 11% to $207.71, while Palo Alto Networks (NASDAQ:PANW) climbed 7% in midday trading Tuesday, driven by softer June CPI data that accelerated expectations for Federal Reserve rate cuts. The broader cybersecurity sector followed, with the First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR) gaining 3%.
The rally reflects a sector-wide risk-on shift, as high-beta tech stocks like CrowdStrike and Palo Alto, trading at 152x and 291x forward P/E respectively, tend to outperform in lower-rate environments. No company-specific catalysts were reported, underscoring the macro-driven nature of the move.
The NASDAQ 100 advanced 1.21% on the session, with rate-sensitive software names attracting outsized inflows. Fortinet (NASDAQ:FTNT) also rose 4%, reinforcing the sector-wide trend.