Software stocks fall as Treasury yields rise, Iran tensions pressure SaaS valuations

Software shares including ZoomInfo, GoDaddy, Flywire and Sprinklr fell in afternoon trading on May 14, 2026, as the 10-year Treasury yield rose to 4.4% and renewed Iran tensions weighed on higher-multiple SaaS names. The selloff followed President Donald Trump’s rejection of Iran’s latest peace proposal, adding geopolitical risk as higher discount rates pressured long-duration software valuations. Investors also remained concerned that agentic AI could weaken traditional enterprise software subscription models into 2026. Capital continued to rotate toward AI infrastructure stocks such as Nvidia and Micron, where investors see clearer capital spending demand and earnings visibility. JPMorgan called the software selloff “broken logic,” while Morgan Stanley described it as sentiment-driven. Sprinklr shares were down 29.4% year to date at $5.17, 44.8% below their July 2025 52-week high of $9.35.