What Happened?
A number of stocks fell in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts.
While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%. This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment.
Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- HVAC and Water Systems company AAON (NASDAQ:AAON) fell 3.2%. Is now the time to buy AAON? Access our full analysis report here, it’s free for active Edge members.
- Vehicle Parts Distributors company FTAI Aviation (NASDAQ:FTAI) fell 2.8%. Is now the time to buy FTAI Aviation? Access our full analysis report here, it’s free for active Edge members.
- Electrical Systems company Hubbell (NYSE:HUBB) fell 2.7%. Is now the time to buy Hubbell? Access our full analysis report here, it’s free for active Edge members.
- Construction and Maintenance Services company MYR Group (NASDAQ:MYRG) fell 4.2%. Is now the time to buy MYR Group? Access our full analysis report here, it’s free for active Edge members.
- Electronic Components company Allient (NASDAQ:ALNT) fell 3.4%. Is now the time to buy Allient? Access our full analysis report here, it’s free for active Edge members.
Zooming In On MYR Group (MYRG)
MYR Group’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.7% on the news that Goldman Sachs raised its price target on the stock to $248.00 from $205.00, though the firm maintained its Neutral rating. The new price target, set by analyst Ati Modak, represented a significant increase of nearly 21% from the previous one. While the firm did not change its overall investment rating on the stock from 'Neutral,' the higher valuation suggested a more positive outlook on the company's future worth. This type of analyst action often signals to investors that a firm sees more potential value in a company's shares than previously estimated, even without a formal recommendation to buy.
MYR Group is up 38.5% since the beginning of the year, but at $204.78 per share, it is still trading 13.2% below its 52-week high of $235.79 from November 2025. Investors who bought $1,000 worth of MYR Group’s shares 5 years ago would now be looking at an investment worth $4,218.
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