What Happened?
Shares of healthcare apparel company Figs (NYSE: FIGS) fell 3.2% in the morning session after investors appeared to take some profits following a recent rally, coupled with broader concerns about a potential slowdown in consumer spending. The decline follows a strong performance for the medical apparel company, which saw its stock price gain over 7% in the previous trading session and hit a 52-week high of $7.31.
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 Figs? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Figs’s shares are extremely volatile and have had 31 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 about 21 hours ago when the stock gained 6.7% on the news that the latest Consumer Price Index (CPI) report came in largely as expected, reinforcing investor hopes for an upcoming Federal Reserve interest rate cut. Data from the Bureau of Labor Statistics showed headline inflation for August at a 2.9% annual rate, with core inflation, which excludes volatile food and energy prices, holding steady at 3.1%. While inflation remains above the Federal Reserve's target, Wall Street interpreted the figures as not being high enough to prevent a widely anticipated rate reduction at the central bank's meeting next week.
Analysts note that the Fed's focus has shifted toward the risks of a cooling labor market. With this report being the last key data point before the meeting, the market's conviction for a rate cut strengthened, fueling a broad rally that pushed major U.S. stock indexes to record highs.
Figs is up 21.1% since the beginning of the year, and at $7.13 per share, it is trading close to its 52-week high of $7.30 from September 2025. Investors who bought $1,000 worth of Figs’s shares at the IPO in May 2021 would now be looking at an investment worth $237.51.
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