What Happened?

A number of stocks fell in the afternoon session after the release of a stronger-than-anticipated Producer Price Index (PPI) report showed wholesale inflation rose more than expected in January. 

The U.S. Bureau of Labor Statistics reported that the PPI, a key measure of inflation at the wholesale level, increased by 0.5% last month, significantly above the 0.3% consensus forecast from economists. On a year-over-year basis, the index rose 2.9%. This unexpectedly high reading suggests that inflationary pressures in the supply chain are more persistent than previously thought. The data has dampened investor optimism for near-term interest rate cuts from the Federal Reserve, as the central bank is less likely to lower borrowing costs while inflation remains elevated. This shift in expectations for monetary policy triggered a broad sell-off across the market, as traders adjusted to the possibility of interest rates remaining higher for longer.

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:

• Auto Loan company Ally Financial (NYSE: ALLY) fell 6.3%. Is now the time to buy Ally Financial? Access our full analysis report here, it’s free.
• Investment Banking & Brokerage company Stifel (NYSE: SF) fell 5.3%. Is now the time to buy Stifel? Access our full analysis report here, it’s free.
• Investment Banking & Brokerage company Piper Sandler (NYSE: PIPR) fell 7.4%. Is now the time to buy Piper Sandler? Access our full analysis report here, it’s free.
• Investment Banking & Brokerage company Perella Weinberg (NASDAQ: PWP) fell 5.3%. Is now the time to buy Perella Weinberg? Access our full analysis report here, it’s free.
• Investment Banking & Brokerage company Moelis (NYSE: MC) fell 7.2%. Is now the time to buy Moelis? Access our full analysis report here, it’s free.

Zooming In On Piper Sandler (PIPR)

Piper Sandler’s shares are somewhat volatile and have had 13 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 21 days ago when the stock gained 8.5% on the news that the company reported strong fourth-quarter 2025 results that significantly surpassed Wall Street's expectations for both revenue and earnings. The firm posted revenue of $666.1 million, a 33.6% increase from the same period last year and well above analysts' consensus estimate of $518.2 million. The beat was driven by strong performance in its investment banking and brokerage divisions. Profitability was also a highlight, with adjusted earnings per share (EPS) coming in at $6.88, which was 44.5% higher than what analysts had projected. Furthermore, the company's pre-tax profit margin expanded to 28.3%, an improvement of 11.9 percentage points year-over-year, indicating greater operational efficiency. Overall, the robust top- and bottom-line beats signaled accelerating business momentum, driving positive investor sentiment.

Piper Sandler is down 16.1% since the beginning of the year, and at $293.46 per share, it is trading 22.4% below its 52-week high of $378.06 from January 2026. Investors who bought $1,000 worth of Piper Sandler’s shares 5 years ago would now be looking at an investment worth $2,619.

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