US futures edged higher this morning after markets touched fresh records then wobbled. Nasdaq 100, Dow, and S&P 500 futures all pointed slightly green in pre-market.
Tonight the spotlight shifts to software and cloud names. After yesterday's AI rotation, when chips sold off while software soared on Palantir, the market tests whether software momentum still has legs through a wave of earnings.
Cloudflare is the headline act, carrying one of the biggest implied moves of the night. Datadog, The Trade Desk, and Atlassian follow, painting a broad picture of cloud spending, digital advertising, and collaboration software.
Q4 plus full FY26 close. Focus on forward guidance and AI-feature adoption
Tonight's Catalysts 🧨
Cloudflare is tonight's volatility test
Cloudflare (NET) could swing about 11% after its report, one of the most volatile events tonight. The company has beaten estimates four quarters running. Investors want to see revenue acceleration toward mid-30% growth and proof that demand for its security and AI products stays strong.
Datadog reads cloud and AI spending
Datadog (DDOG) reports earlier, with consensus revenue of $1.08B, up roughly 31% year over year. Because its tools monitor cloud infrastructure, the results are a signal for whether corporate spending on cloud and AI projects is still aggressive or starting to slow.
The Trade Desk and Atlassian, two sides of software
Not all software is growing at AI-infra speed. The Trade Desk (TTD) is seen growing only about 8%, pressured by softer consumer ad spending. Atlassian (TEAM) closes its fiscal year, with focus on forward guidance and AI-feature adoption. The contrast against Cloudflare and Datadog's hypergrowth is tonight's real story.
Major futures ticked higher this morning. Beyond the watchlist, keep an eye on consumer names reporting tonight such as Airbnb and Lyft, plus follow-through from Snap, which cratered more than 16% yesterday after missing on revenue. Specific per-stock pre-market moves will firm up once the US pre-market opens.
Macro Note 📝
July ISM Services PMI slipped to 50.1, below the 51.5 estimate, signaling a slowing US services sector. That adds fuel to the debate over Fed rate-cut odds and could color risk appetite tonight.
Conclusion
Tonight is a direct continuation of yesterday's AI-rotation story. Money is flowing into software, but the market is now testing whether that growth justifies the valuations. Cloudflare sets the tempo, while Datadog, The Trade Desk, and Atlassian round out the picture on cloud and digital-ad spending.
If you track the AI and software theme, tonight is a chance to see which names are truly growing and which are running out of breath. What software stocks are you watching tonight?
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
