What Happened?
A number of stocks jumped in the morning session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Gaming Solutions company Light & Wonder (NASDAQ: LNW) jumped 6.4%. Is now the time to buy Light & Wonder? Access our full analysis report here, it’s free.
- Aerospace company Rocket Lab (NASDAQ: RKLB) jumped 10.5%. Is now the time to buy Rocket Lab? Access our full analysis report here, it’s free.
- Leisure Facilities company AMC Entertainment (NYSE: AMC) jumped 10.5%. Is now the time to buy AMC Entertainment? Access our full analysis report here, it’s free.
- Outpatient & Specialty Care company LifeStance Health Group (NASDAQ: LFST) jumped 7.6%. Is now the time to buy LifeStance Health Group? Access our full analysis report here, it’s free.
- Hardware & Infrastructure company Xerox (NASDAQ: XRX) jumped 8.1%. Is now the time to buy Xerox? Access our full analysis report here, it’s free.
Zooming In On Rocket Lab (RKLB)
Rocket Lab’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. But moves this big are rare even for Rocket Lab and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 53.4% on the news that the company reported impressive third-quarter results and provided an optimistic EBITDA forecast for the next quarter, which blew past analysts' expectations. Its revenue and EBITDA both outperformed Wall Street's estimates in the quarter. The performance was largely driven by strong demand in its space systems segment. Zooming out, we think this was a very good quarter.
Rocket Lab is up 13.5% since the beginning of the year, but at $28.33 per share, it is still trading 10.3% below its 52-week high of $31.57 from January 2025.
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