What Happened?
A number of stocks jumped in the afternoon session after President Trump's state visit to Beijing lifted market sentiment across tech, with the S&P hitting a record high above 7,500.
While the Trump-Xi summit produced fewer concrete deals than investors had hoped for, the general mood around US-China trade relations shifted from confrontational to cautiously constructive and for a sector as globally exposed as software, that reduction in uncertainty was enough to drive buyers back in.
Adding to the positive sentiment, Figma posted 46% revenue growth with early AI monetisation showing genuine traction, and ServiceNow announced a multi-year AI partnership with Experian. Each print reinforced the same thesis: that enterprise software companies are successfully embedding AI into their products and charging for it, rather than being disrupted by it a concern that had weighed heavily on the sector earlier in the year.
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:
- Tax Software company Intuit (NASDAQ: INTU) jumped 4.5%. Is now the time to buy Intuit? Access our full analysis report here, it’s free.
- Project Management Software company Asana (NYSE: ASAN) jumped 5.8%. Is now the time to buy Asana? Access our full analysis report here, it’s free.
- Compliance Software company Workiva (NYSE: WK) jumped 4.1%. Is now the time to buy Workiva? Access our full analysis report here, it’s free.
- HR Software company Paylocity (NASDAQ: PCTY) jumped 4.1%. Is now the time to buy Paylocity? Access our full analysis report here, it’s free.
- Vulnerability Management company Rapid7 (NASDAQ: RPD) jumped 4.8%. Is now the time to buy Rapid7? Access our full analysis report here, it’s free.
Zooming In On Asana (ASAN)
Asana’s shares are extremely volatile and have had 34 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 1 day ago when the stock gained 1.6% on the news that a robust earnings report and upgraded annual revenue forecast from networking giant Cisco Systems, fueled optimism in the software sector.
Cisco's impressive results were driven by strong demand from hyperscaler clients, the massive companies that dominate cloud computing, who are pouring capital into artificial intelligence infrastructure. This report was viewed by investors as a positive bellwether for the entire tech ecosystem.
The voracious appetite for AI is not only benefiting chipmakers but also the companies providing the essential networking hardware required to support these advanced systems. Cisco's performance reinforces the market narrative that the AI boom is generating substantial and sustained spending across the broader technology landscape, lifting investor sentiment sector-wide.
Asana is down 52.3% since the beginning of the year, and at $6.19 per share, it is trading 67.4% below its 52-week high of $19 from June 2025. Investors who bought $1,000 worth of Asana’s shares 5 years ago would now be looking at only $203.05.
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