What Happened?

A number of stocks fell in the afternoon session after escalating geopolitical tensions in the Middle East and climbing global bond yields dampened investor risk appetite. 

Bloomberg reported renewed conflict between the U.S. and Iran in the Strait of Hormuz pushed crude oil prices sharply higher, reviving inflation concerns across global markets. At the same time, Bloomberg also reported global government bond yields reached multiyear highs as investors weighed the growing likelihood of a Federal Reserve interest rate hike in September. 

Rising Treasury yields present significant headwinds for equity markets, particularly for high-valuation growth sectors, as higher borrowing costs can compress corporate profit margins and make fixed-income alternatives more appealing. Coupled with surging energy costs and macroeconomic uncertainty, the shift in interest rate expectations prompted broad-based selling across equity indices.

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:

• Identity Management company Okta(NASDAQ:OKTA) fell 4.8%.Is now the time to buy Okta? Access our full analysis report here, it's free.

• Cloud Monitoring company Datadog(NASDAQ:DDOG) fell 4.9%.Is now the time to buy Datadog? Access our full analysis report here, it's free.

• Developer Operations company JFrog(NASDAQ:FROG) fell 8.4%.Is now the time to buy JFrog? Access our full analysis report here, it's free.

• Network Security company Zscaler(NASDAQ:ZS) fell 5.4%.Is now the time to buy Zscaler? Access our full analysis report here, it's free.

• Data Infrastructure company Elastic(NYSE:ESTC) fell 4%.Is now the time to buy Elastic? Access our full analysis report here, it's free.

Zooming In On JFrog (FROG)

JFrog's shares are extremely volatile and have had 36 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 5 days ago when the stock gained 10.1% on the news that the company announced integrations with Zscaler, Cloudflare, and Netskope to block malicious software packages at the network level and launched its JFrog Traffic Controller. 

Per a company press release, the newly launched JFrog Traffic Controller works with Secure Access Service Edge (SASE) providers to transparently reroute software package download requests through JFrog Artifactory. Under this setup, JFrog Curation inspects each package against security, license, and quality policies, delivering compliant packages while blocking malicious downloads. The solution initially supports Zscaler Internet Access, Cloudflare Gateway, and Netskope One SSE, with support for additional SASE partners planned. JFrog highlighted that its 2026 Software Supply Chain Security State of the Union report documented a 451% year-over-year surge in malicious packages, exceeding 171,000 unique instances. The integrations aim to provide a single control point for enterprise security without disrupting developer workflows.