What Happened?

A number of stocks fell in the afternoon session after major indices pulled back from record highs reached the previous week. 

The S&P 500 and Nasdaq were under pressure as the dominant artificial intelligence trade cooled off. Notable names like Nvidia were down as traders locked in profits following a banner year where the Nasdaq surged over 20%. With the S&P 500 recently hitting intraday highs near 6,945, this dip reflected a shift in internal momentum rather than a response to major economic news.

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:

• General Industrial Machinery company Icahn Enterprises (NASDAQ: IEP) fell 3.8%. Is now the time to buy Icahn Enterprises? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company Sunrun (NASDAQ: RUN) fell 2.8%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company SolarEdge (NASDAQ: SEDG) fell 3.5%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free for active Edge members.
• Engineered Components and Systems company Graham Corporation (NYSE: GHM) fell 3.3%. Is now the time to buy Graham Corporation? Access our full analysis report here, it’s free for active Edge members.
• Professional Tools and Equipment company Hyster-Yale Materials Handling (NYSE: HY) fell 3.1%. Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Icahn Enterprises (IEP)

Icahn Enterprises’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago when the stock gained 4.5% on the news that a new trade agreement between the United States and Japan spurred a broad market rally. 

The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.

Icahn Enterprises is down 18.6% since the beginning of the year, and at $7.31 per share, it is trading 29.9% below its 52-week high of $10.43 from February 2025. Investors who bought $1,000 worth of Icahn Enterprises’s shares 5 years ago would now be looking at an investment worth $144.70.

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