Cloud ETFs Shine Despite Market Selloff: Here’s Why – March 9, 2026
Key Takeaways
- Cloud ETFs rally as AI infrastructure demand offsets geopolitical fears.
- WCLD, CLOU gain weekly while the broader market slips
Cloud ETFs have been among the few winners amid the recent Iran tensions. The WisdomTree Cloud Computing Fund (WCLD – Free Report) gained 9.2% over the past week (as of Mar. 6, 2026). The ETF added 3.6% on Mar. putting the exchange-traded fund on track for its strongest session since April 24, when it surged 4.7%. Several cloud-focused companies drove the rally.
Meanwhile, SailPoint, an identity security provider for cloud enterprises, rose 6.5%, and Zscaler advanced 1.5%. Among WCLD’s major holdings, HubSpot gained 4.5%, while Paycom Software added 1.5%.
Cloud stocks, particularly those tied to AI infrastructure like AWS, Azure, and Google Cloud, have risen amid recent U.S.-Iran tensions due demand drivers overruling geopolitical fears. Surging needs for AI infrastructure and digital transformation have propelled cloud providers, with generative AI fueling massive spending on hyperscalers.
Geopolitical Resilience
Broader markets faced volatility from Iran threats, including risks to data centers and energy supplies, yet cloud stocks decoupled as AI is viewed as a strategic asset immune to typical selloffs. Conflicts may even raise the importance technological sovereignty and the modern warfare involves technology.
Okta Rallies After Earnings Beat
The surge in Okta followed the company’s fourth-quarter results released Wednesday evening, which topped Wall Street’s expectations. The identity security provider has benefited from the growing adoption of agentic artificial intelligence tools and the related increase in security demand. Thursday’s rally put Okta on track for its best performance since April 9, when the stock jumped 11.3%.
Bottom Line
Traditional cloud and Software-as-a-Service (SaaS) companies have faced pressure amid concerns that artificial intelligence could disrupt established software providers. The late-February launch of Claude Code Security by Anthropic — a security tool integrated into its Claude Code AI platform — also weighed on software and cybersecurity stocks.
However, the threat did not appear as a long-term issue. Global X Cloud Computing ETF (CLOU – Free Report) has also added 6.3% over the past week. Meanwhile, the broader market fund State Street SPDR S&P 500 ETF Trust (SPY – Free Report) has lost 0.3% over the past week.
