What Happened?
A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East raised concerns over higher inflation and a potential economic slowdown.
The conflict, involving the U.S., Israel, and Iran, caused a surge in energy prices, directly impacting industrial and materials companies by increasing costs for transportation, logistics, and manufacturing. Investors were concerned that sustained high oil prices could put further pressure on inflation, complicating the economic outlook. The broader market sentiment turned negative, with Wall Street heading for a fourth consecutive weekly loss as investors weighed these geopolitical risks. This environment is particularly challenging for cyclical sectors like industrials, which are sensitive to changes in global economic demand and input costs.
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:
- Renewable Energy company Sunrun (NASDAQ: RUN) fell 4%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
- Renewable Energy company EVgo (NASDAQ: EVGO) fell 3.9%. Is now the time to buy EVgo? Access our full analysis report here, it’s free.
- Building Materials company UFP Industries (NASDAQ: UFPI) fell 3.4%. Is now the time to buy UFP Industries? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Tutor Perini (NYSE: TPC) fell 4%. Is now the time to buy Tutor Perini? Access our full analysis report here, it’s free.
- Electronic Components company Corning (NYSE: GLW) fell 3.9%. Is now the time to buy Corning? Access our full analysis report here, it’s free.
Zooming In On Sunrun (RUN)
Sunrun’s shares are extremely volatile and have had 82 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 8 days ago when the stock dropped 5.4% on the news that the broader market tumbled in morning trading as geopolitical tensions in the Middle East sent crude oil prices soaring above $100 a barrel.
The unease among investors stemmed from the U.S.-Israel conflict with Iran, which intensified concerns over severe supply chain disruptions. With oil prices breaching the key psychological barrier of $100, major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq all opened significantly lower. The uncertainty weighed on the economic outlook, with Goldman Sachs cutting its growth forecast and citing a 25% chance of a recession in the next year. This risk-off sentiment reflected fears that sustained high energy prices could fuel inflation and dampen economic activity, prompting investors to pull back from equities.
Sunrun is down 35.6% since the beginning of the year, and at $12.52 per share, it is trading 41.5% below its 52-week high of $21.41 from January 2026. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at only $218.11.
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