What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
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:
- Energy Products and Services company FTAI Infrastructure (NASDAQ: FIP) jumped 17.3%. Is now the time to buy FTAI Infrastructure? Access our full analysis report here, it’s free.
- Hospital Chains company Acadia Healthcare (NASDAQ: ACHC) jumped 4.5%. Is now the time to buy Acadia Healthcare? Access our full analysis report here, it’s free.
- Outpatient & Specialty Care company agilon health (NYSE: AGL) jumped 9.4%. Is now the time to buy agilon health? Access our full analysis report here, it’s free.
- Health Insurance Providers company Clover Health (NASDAQ: CLOV) jumped 4.6%. Is now the time to buy Clover Health? Access our full analysis report here, it’s free.
- Healthcare Technology for Providers company Evolent Health (NYSE: EVH) jumped 10%. Is now the time to buy Evolent Health? Access our full analysis report here, it’s free.
Zooming In On FTAI Infrastructure (FIP)
FTAI Infrastructure’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. But moves this big are rare even for FTAI Infrastructure and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 3.5% on the news that an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
FTAI Infrastructure is down 27.3% since the beginning of the year, and at $5.30 per share, it is trading 46.7% below its 52-week high of $9.94 from August 2024. Investors who bought $1,000 worth of FTAI Infrastructure’s shares at the IPO in July 2022 would now be looking at an investment worth $1,765.
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