Freshworks, Okta fall as higher yields and Iran tensions pressure software stocks

Freshworks and Okta shares fell on May 14, 2026, as rising Treasury yields and renewed Iran tensions pressured high-valuation software stocks. The 10-year Treasury yield rose to 4.4% after President Donald Trump rejected Iran’s latest peace proposal, weighing on SaaS valuations tied to long-dated cash flows. The selloff reflected broader concerns that agentic artificial intelligence could weaken traditional enterprise software subscription models in 2026. Investors continued shifting capital toward AI infrastructure names such as Nvidia and Micron, where spending demand and earnings visibility remain stronger. Freshworks shares traded at $8.58, down 26.1% year to date and 46.3% below their 52-week high of $15.98 set in May 2025. The stock has posted 14 moves of more than 5% over the past year. Freshworks had gained 3.7% on May 4, 2026, after stronger results and forecasts from software peers including Atlassian and Twilio lifted sentiment across the SaaS sector.