Shares of cloud-based software leaders Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) were falling back to earth today, down 7%, 7.2%, and 7.2%, respectively, as of 2:38 p.m. ET -- more than reversing yesterday's big gains.

Just as high-growth tech stocks surged yesterday on hopes for declining inflation without large job losses, today saw two data points that might have thrown cold water on each of those predictions.

First, some big-tech and other software companies reported earnings last night, showing a significant deceleration in cloud growth. But don't tell that to the rest of the non-tech economy; today's January jobs report blew past expectations, suggesting the labor market remains very tight. That could mean the Federal Reserve might not be able to end its rate hikes as soon as some had thought.

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Source Fool.com