What Happened?
Shares of department store chain Kohl’s (NYSE: KSS) fell 6.1% in the afternoon session after a higher-than-expected inflation report rattled the broader market, compounding concerns over the retailer's weakening sales. U.S. equities traded lower after the Producer Price Index (PPI) for January rose more than anticipated, sparking concerns that sticky inflation could limit the Federal Reserve's room for near-term easing. This news prompted a 'risk-off' sentiment among investors, leading to a broader market decline.
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 Kohl's? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Kohl’s shares are extremely volatile and have had 58 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 14 days ago when the stock gained 4.8% on the news that a softer-than-expected inflation report fueled hopes for interest rate cuts by the Federal Reserve. The January Consumer Price Index (CPI), a key measure of inflation, rose by 0.2%, which was less than economists had forecast, with the annual rate cooling to 2.4%. This encouraging data increased market expectations for the Fed to begin cutting interest rates as early as June. The news prompted a rally in Treasuries as their yields fell. While the market's reaction was initially described as a "bumpy ride" due to concerns in other sectors, the favorable inflation data ultimately helped calm Wall Street. Lower inflation is a key prerequisite for the central bank to ease its monetary policy, which is generally supportive of stock valuations.
Kohl's is down 23.4% since the beginning of the year, and at $16.34 per share, it is trading 33.9% below its 52-week high of $24.71 from December 2025. Investors who bought $1,000 worth of Kohl’s shares 5 years ago would now be looking at an investment worth $286.67.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
