Stock Market Today: Nasdaq, S&P 500 Up On Jobless Claims; Software Stocks Fortinet, Datadog Lead Tech Gains (Live Coverage)

Why It Matters

The earnings beat underscores the resilience of cybersecurity and cloud‑monitoring software amid a softening labor market, while Arm’s slide highlights volatility in AI chip valuations.

Key Takeaways

• Fortinet shares jumped >20% after Q1 earnings beat expectations
• Datadog surged 41% on 33% revenue growth and earnings beat
• Arm Holdings fell 8% despite posting a profit and revenue beat
• Nasdaq crossed 26,000, up 0.6% on strong software earnings
• Howmet Aerospace rose 8% after 42% earnings jump and sales rise

Pulse Analysis

The Thursday market rally was anchored by a modest uptick in jobless claims, which rose to 200,000—still below analysts’ expectations—allowing investors to focus on earnings momentum rather than macro‑risk. With the 10‑year Treasury yield easing to 4.33%, risk‑on sentiment found a foothold, propelling the Nasdaq past the 26,000 threshold for the first time this year. This technical milestone reinforced confidence in growth‑oriented sectors, especially software, as the broader economy shows signs of steady, if not accelerating, employment trends.

Fortinet and Datadog exemplified why software remains a defensive growth play. Fortinet’s 41% earnings surge to 82 cents per share, coupled with a 20% revenue jump to $1.85 billion, signaled robust demand for cybersecurity solutions amid rising digital threats. Datadog’s 30% earnings beat and 33% revenue growth to $1.01 billion highlighted the expanding market for cloud‑monitoring platforms that help enterprises manage complex, multi‑cloud environments. Both stocks outperformed the broader market, suggesting investors are rewarding firms that combine recurring revenue models with clear, scalable growth pathways.

Conversely, Arm Holdings’ 8% plunge despite a modest earnings beat illustrates the volatility surrounding AI‑chip valuations. The market appears to be pricing in future demand uncertainties, even as Arm posted a 60‑cent adjusted profit on $1.49 billion in sales. Meanwhile, Howmet Aerospace’s 8% rally, driven by a 42% earnings surge and 19% revenue increase, underscores the resilience of the aerospace supply chain as airlines resume capacity. Together, these divergent moves reflect a market that rewards concrete earnings performance while remaining cautious on speculative AI hype.