What Happened?
A number of stocks fell in the afternoon session after reports revealed the Trump administration is considering new restrictions on software exports to China.
The news amplified investor anxiety surrounding US-China trade relations, triggering a broad sell-off in the technology sector. According to reports, the administration is weighing these limitations as a potential response to China's own trade measures. The uncertainty rattled the market, contributing to declines in major indexes like the S&P 500 and Nasdaq. Proposed export controls of this nature could significantly disrupt the global technology trade, impacting companies that rely on the Chinese market. The move adds to existing macro challenges, creating a cautious outlook among investors for the software industry.
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:
- Healthcare And Life Sciences Software company Doximity (NYSE: DOCS) fell 2.1%. Is now the time to buy Doximity? Access our full analysis report here, it’s free for active Edge members.
- Data Storage company Commvault (NASDAQ: CVLT) fell 2.9%. Is now the time to buy Commvault? Access our full analysis report here, it’s free for active Edge members.
- Data Analytics company Samsara (NYSE: IOT) fell 2.5%. Is now the time to buy Samsara? Access our full analysis report here, it’s free for active Edge members.
- Content Delivery company Cloudflare (NYSE: NET) fell 1.6%. Is now the time to buy Cloudflare? Access our full analysis report here, it’s free for active Edge members.
- Identity Management company Okta (NASDAQ: OKTA) fell 2.6%. Is now the time to buy Okta? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Commvault (CVLT)
Commvault’s shares are quite volatile and have had 19 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 2 days ago when the stock gained 2.6% as positive news on corporate earnings, easing political and trade tensions, and optimism about future interest rate cuts all converged to lift investor sentiment.
The overall market, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, climbed significantly. A major catalyst was Apple shares rising 4% after a firm upgraded its rating, citing improving iPhone demand and predicting a long growth cycle. More broadly, the third-quarter earnings season got off to a strong start, with 76% of the 58 S&P 500 companies beating expectations, lifting the market's mood.
Additionally, there were hope for an end to the ongoing U.S. government shutdown, which is seen as good for the economy. Investors also moved past recent fears over credit risks that had caused a sell-off the previous week, with shares of regional banks rebounding. Finally, signs that trade tensions with China were de-escalating, including expectations that new tariffs might be avoided, added to the overall positive momentum, leading traders to focus on more favorable factors like earnings and potential Federal Reserve rate cuts.
Commvault is up 11.5% since the beginning of the year, but at $169.87 per share, it is still trading 13.1% below its 52-week high of $195.41 from September 2025. Investors who bought $1,000 worth of Commvault’s shares 5 years ago would now be looking at an investment worth $4,047.
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