What Happened?
Shares of insurance giant Allstate (NYSE: ALL) fell 3.2% in the afternoon session after a government report showed U.S. employers hired far fewer workers in August than economists expected. The disappointing jobs data sparked concerns on Wall Street that the U.S. economy might be slowing down too quickly, potentially signaling a recession. This uncertainty led to a widespread decline in stocks, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average dropping 0.7% in morning trading. Investors reacted by selling off shares across various sectors, and Allstate was not immune to the negative market sentiment, despite some recent positive news, including a reiterated "Outperform" rating from BMO Capital.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Allstate? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Allstate’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Allstate is up 5.2% since the beginning of the year, and at $201.87 per share, it is trading close to its 52-week high of $213.62 from August 2025. Investors who bought $1,000 worth of Allstate’s shares 5 years ago would now be looking at an investment worth $2,212.
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