Why Cloud Stocks Snowflake, MongoDB, and HubSpot Soared on Wednesday

This year has been a year like no other -- and mostly not in a good way. The trifecta of 40-year high inflation, a bear market, and the potential for a recession have weighed on investor sentiment. With so much uncertainty, market watchers have been keeping a weather eye on external factors that might help pave the road to recovery.

With that as a backdrop, a rate decision by the Federal Reserve sparked a rally that swept the major market indexes, helping to drive up beleaguered high-growth cloud computing stocks. Data warehouse and analysis provider Snowflake (NYSE: SNOW) jumped as much as 9.7%, database provider MongoDB (NASDAQ: MDB) surged as much as 9.7%, and customer relationship management specialist HubSpot (NYSE: HUBS) rose as much as 9.1%. By the end of the day, the trio were still trading higher, up 8.6%, 8.7%, and 8.7%, respectively.

While there was nothing in the way of major company-specific news driving the gains, investors were content to cherry-pick shares of growth stocks that have been beaten down so far this year.

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Source Fool.com