What Happened?
A number of stocks jumped in the morning session after investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets.
This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
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 American Superconductor (NASDAQ: AMSC) jumped 3.1%. Is now the time to buy American Superconductor? Access our full analysis report here, it’s free.
- Ground Transportation company Hertz (NASDAQ: HTZ) jumped 6.6%. Is now the time to buy Hertz? Access our full analysis report here, it’s free.
- Renewable Energy company Fluence Energy (NASDAQ: FLNC) jumped 6%. Is now the time to buy Fluence Energy? Access our full analysis report here, it’s free.
- Waste Management company Perma-Fix (NASDAQ: PESI) jumped 16.4%. Is now the time to buy Perma-Fix? Access our full analysis report here, it’s free.
- Renewable Energy company EVgo (NASDAQ: EVGO) jumped 3.7%. Is now the time to buy EVgo? Access our full analysis report here, it’s free.
Zooming In On Perma-Fix (PESI)
Perma-Fix’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. But moves this big are rare even for Perma-Fix and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 26.5% on the news that concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
Perma-Fix is down 11.2% since the beginning of the year, and at $9.55 per share, it is trading 38.4% below its 52-week high of $15.50 from November 2024. Investors who bought $1,000 worth of Perma-Fix’s shares 5 years ago would now be looking at an investment worth $1,317.
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