Shares of cloud software favorites (NASDAQ: ZS), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) were surging this week, up 29%, 10.3%, and 13.2%, respectively, through Thursday trading, according to data provided by S&P Global Market Intelligence.

It was a good week for high-growth cloud software stocks on several fronts. Zscaler made a positive pre-announcement, and a Wall Street analyst issued a note suggesting the optimization in cloud software spending might be coming to an end.

Softer-than-expected inflation readings for April also helped, as these growth stocks are highly sensitive to inflation and interest rates.

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Source Fool.com