What happened
Shares of Okta (OKTA 4.88%), an identity and access management company, were rising today, likely as investors received positive economic data and as bond yields dropped.
The tech stock was up by 5.7% as of 3:07 p.m. EDT on Thursday.
So what
The broader market was making gains today after the Commerce Department reported that retail sales spiked 9.8% in March. Additionally, the Labor Department reported today that first-time unemployment insurance claims fell to their lowest level since March 2020. This positive economic news boosted investors' sentiment in the market.
Image source: Getty Images.
Additionally, the 10-year Treasury yield fell today to 1.54%, which likely caused some investors to shift their focus back to tech stocks. As bond yields rose earlier this year, some investors fled the tech sector because they believed the increasing rates would make it more expensive for fast-growing tech companies to borrow money.
This is the second time this week that Okta's share price has made significant gains. The tech stock spiked just two days ago after the Centers for Disease Control and Prevention and the Food and Drug Administration both recommended that the U.S. pause its use of the Johnson & Johnson vaccine.
Investors were likely anticipating that a slowdown in vaccine rollouts might cause companies to keep their employees working from home, rather than bringing them back into the office soon. Doing so could boost demand for Okta's access management services.
Now what
Okta's gains today show that investors are continually processing a lot of economic news as the U.S. tries to emerge from the pandemic. But with some investors seemingly making trades based on daily news, Okta's stock could continue to experience some dips and spikes over the next few months.
