NEW YORK, Jan 10, 2026, 13:21 EST — Market closed
- Cloud computing stocks, measured by CLOU, fell behind the broader market by week’s end
- With rates and earnings back under the microscope, investors are growing selective about pricey software stocks
- Upcoming catalysts will be tariff news, the Fed’s late-January meeting, and a series of cloud earnings reports in February
The Global X Cloud Computing ETF (CLOU) slipped 0.27%, finishing at $22.58 on Friday. (MarketBeat)
The cloud basket lagged behind the broader market, despite investors continuing to push up shares linked to the artificial-intelligence boom and the allure of cheaper borrowing costs.
The timing is crucial. As fourth-quarter earnings season approaches, cloud companies find themselves in the spotlight, with many valued on growth that hasn’t yet translated into cash flow.
U.S. stocks wrapped up the week with the S&P 500 hitting a record close, fueled by another boost in chipmaker shares. “On the overall AI theme, investors are getting granular and picking the winners and losers,” said Zachary Hill, head of portfolio management at Horizon Investments. (Reuters)
That pickiness surfaced the day before, as big tech faltered and investors wanted solid evidence that their spending was yielding results. “It’s become a ‘show me’ sector. Show me how you monetize this,” said Art Hogan, chief market strategist at B. Riley Wealth. (Virginia Business)
CLOU is an exchange-traded fund—a collection of stocks that trades like a single share—with a focus on software and cloud infrastructure companies. Its top holdings are Akamai (AKAM), making up about 5.0% of its assets, followed by Salesforce (CRM) at 4.5%, Shopify (SHOP) at 4.4%, DigitalOcean (DOCN) at 4.3%, and Zoom (ZM) also at 4.3%, according to the fund sponsor. (Global X ETFs)
Other cloud-focused ETFs showed mixed moves. First Trust Cloud Computing ETF (SKYY) inched up 0.16% to close at $128.95 on Friday. Meanwhile, WisdomTree Cloud Computing Fund (WCLD) dropped 0.66%, ending the day at $34.649. (StockAnalysis)
Friday’s market action followed a U.S. jobs report revealing hiring slowed more than anticipated in December, with payrolls increasing by just 50,000. The unemployment rate edged down to 4.4%. Meanwhile, average hourly earnings climbed 3.8% year-over-year, fueling ongoing debate over the pace at which the Federal Reserve might cut rates. (Reuters)
Cloud computing stocks remain sensitive to interest rates, often commanding higher valuations compared to their current earnings. On the political front, investors face a key date: the U.S. Supreme Court is set to rule on Jan. 14 regarding the legality of President Donald Trump’s broad tariffs, injecting uncertainty into risk appetite. (Reuters)
Technicians are watching CLOU’s broad trading range closely after a volatile year. Over the past 52 weeks, the ETF has fluctuated between $17.73 and $26.39, key levels that could serve as support or resistance. (Investing)
The downside is clear: if yields climb once more or if cloud firms start cutting back on budgets and bookings, the sector could tumble quickly. That same “AI trade” boosting chip demand might weigh on software, especially if clients hold back spending while vendors ramp up capital expenditures.
Next up on the market’s radar: cloud earnings. Akamai is set to report on Feb. 19, followed by Salesforce on Feb. 25, according to Nasdaq’s earnings calendars.
