What Happened?
A number of stocks fell in the morning session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
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:
- Electronic Components & Manufacturing company Flex (NASDAQ: FLEX) fell 3.4%. Is now the time to buy Flex? Access our full analysis report here, it’s free.
- Business Process Outsourcing & Consulting company Genpact (NYSE: G) fell 3%. Is now the time to buy Genpact? Access our full analysis report here, it’s free.
- Business Process Outsourcing & Consulting company Huron (NASDAQ: HURN) fell 3.2%. Is now the time to buy Huron? Access our full analysis report here, it’s free.
- Traditional Media & Publishing company IMAX (NYSE: IMAX) fell 3.3%. Is now the time to buy IMAX? Access our full analysis report here, it’s free.
- Traditional Media & Publishing company Sinclair (NASDAQ: SBGI) fell 3.1%. Is now the time to buy Sinclair? Access our full analysis report here, it’s free.
Zooming In On Flex (FLEX)
Flex’s shares are very volatile and have had 21 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 17 days ago when the stock gained 7% on the news that the major indices rebounded from a week of heavy selling. This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
Flex is flat since the beginning of the year, and at $63.37 per share, it is trading 12.1% below its 52-week high of $72.08 from December 2025. Investors who bought $1,000 worth of Flex’s shares 5 years ago would now be looking at an investment worth $3,482.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report, it’s free.
