What Happened?
A number of stocks jumped in the afternoon session after the Bureau of Economic Analysis reported a 0.9% increase in personal consumption expenditures for August, signaling resilient consumer demand alongside steady economic expansion.
The latest report from the U.S. Bureau of Economic Analysis showed that consumer outlays advanced strongly despite a modest 0.2% uptick in personal income. Underlying inflation trends also remained relatively subdued, with the core Personal Consumption Expenditures price index—a key inflation gauge watched closely by policymakers—increasing 0.2% month-over-month. Supporting the positive economic picture, the third estimate of second-quarter gross domestic product confirmed the economy expanded at an annualized rate of 2.2%.
Together, these indicators suggest that households continue to spend at a healthy pace, alleviating concerns over an impending consumer slowdown and bolstering market confidence across retail and consumer sectors.
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:
- Design Software company Procore Technologies (NYSE: PCOR) jumped 3.7%. Is now the time to buy Procore Technologies? Access our full analysis report here, it’s free.
- Advertising Software company Zeta Global (NYSE: ZETA) jumped 6.8%. Is now the time to buy Zeta Global? Access our full analysis report here, it’s free.
- Automation Software company SoundHound AI (NASDAQ: SOUN) jumped 4.7%. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.
Zooming In On Zeta Global (ZETA)
Zeta Global’s shares are extremely volatile and have had 50 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 27 days ago when the stock gained 4.6% on the news that software equities broadly gained momentum following a pullback in treasury yields and second-quarter financial results from Snowflake. Lower Treasury yields supported the move after Fed Governor Christopher Waller signaled support for keeping rates steady. The 10-year yield fell to 4.756%, while the 2-year yield declined to 4.328%, according to CNBC. Because software valuations are heavily based on cash flows expected years into the future, lower yields reduce the discount rate applied to those earnings and can increase the value investors assign to the group today. Snowflake surged after reporting earnings and increasing its forward outlook, sparking widespread optimism across the enterprise software industry.
Taking a closer look at the quarter, SNOW’s revenue reached $1.55 billion, up 35% year on year, driven by product revenue of $1.48 billion, which grew 37%, the company reported in an official press release. The upbeat report bolstered investor sentiment regarding enterprise tech demand and software spending.
Zeta Global is up 56.5% since the beginning of the year, and at $31.17 per share, it is trading close to its 52-week high of $32.68 from September 2026. Investors who bought $1,000 worth of Zeta Global’s shares 5 years ago would now be looking at an investment worth $5,319.
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