Why Zoom Video Communications, Datadog, and MongoDB Each Fell on Wednesday

Shares of Zoom Video Communications (NASDAQ: ZM), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) each fell hard on Wednesday, with the stocks down 4.8%, 6.9%, and 7%, respectively, as of 1:48 p.m. ET.

None of the above reported material news today, so the declines were likely due to marketwide selling in technology stocks, specifically highly valued enterprise software names like these. That's been the result of some recent hawkish commentary from several Federal Reserve officials, who seem to be preparing the market for steep interest rate hikes.

The aforementioned software stocks were darlings of the pandemic. As high-growth stocks with profits far out into the future, these stocks benefited when the Fed cut interest rates to zero. Meanwhile, usage of these new, "stay-at-home" tools helped businesses thrive during lockdowns. Therefore, these names saw an acceleration of growth.

Source Fool.com