Growth Stocks Rally Amidst Favorable Inflation Data and Delayed Tariffs: Elastic, Akamai, ON24, BlackLine, and GitLab Shares Surge

Several tech stocks, including Elastic, Akamai, ON24, BlackLine, and GitLab, surged after the US Federal Reserve indicated a potential interest rate cut due to benign inflation data. The favorable news boosted hopes for lower borrowing costs and increased the present value of future earnings for these growth-oriented technology stocks.

Title: Tech Stocks Surge on Fed Rate Cut Bets

Several tech stocks, including Elastic, Akamai, ON24, BlackLine, and GitLab, surged after the US Federal Reserve indicated a potential interest rate cut due to benign inflation data. The favorable news boosted hopes for lower borrowing costs and increased the present value of future earnings for these growth-oriented technology stocks.

The Federal Reserve's latest Consumer Price Index (CPI) report showed inflation held steady at 2.7% in July [1]. This data bolstered investor expectations for a rate cut at the Fed's next meeting in September. Treasury Secretary Scott Bessent called for a series of rate cuts, including a 50 basis point cut in September [2]. The probability of a rate cut in September surged to over 96% following the report [3].

These developments led to a rally in tech stocks. Elastic (NYSE:ESTC) and Akamai (NASDAQ:AKAM) both jumped by 3.9%, while ON24 (NYSE:ONTF) and BlackLine (NASDAQ:BL) saw gains of 3.6% and 3.1%, respectively. GitLab (NASDAQ:GTLB) was the most significant gainer, rising by 4.2% [3]. Lower interest rates are typically beneficial for growth-oriented technology stocks, as they can reduce borrowing costs and increase the present value of future earnings.

Investors are optimistic about the potential impact of lower interest rates on these tech stocks. Elastic, for instance, is a data infrastructure company that could benefit from reduced borrowing costs. Similarly, Akamai, a content delivery company, and ON24, a virtual events software provider, could see improved financial performance with lower borrowing costs.

However, the market remains cautious. GitLab, despite its recent surge, is still down 26.4% since the beginning of the year and trading 43.3% below its 52-week high. Investors should continue to monitor these stocks and the broader economic indicators to gauge the true impact of potential rate cuts [3].

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-rise-as-fed-rate-cut-bets-surge-after-cpi-data-bessent-comments-133512945.html
[2] https://www.theguardian.com/business/live/2025/aug/13/us-treasury-secretary-scott-bessent-half-point-interest-rate-cut-fed-inflation-business-live-
[3] https://finance.yahoo.com/news/elastic-akamai-on24-blackline-gitlab-212050045.html