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:
- Data & Business Process Services company Planet Labs (NYSE: PL) jumped 5.4%. Is now the time to buy Planet Labs? Access our full analysis report here, it’s free.
- Dental Equipment & Technology company Envista (NYSE: NVST) jumped 5.2%. Is now the time to buy Envista? Access our full analysis report here, it’s free.
- Terrestrial Telecommunication Services company Lumen (NYSE: LUMN) jumped 5.8%. Is now the time to buy Lumen? Access our full analysis report here, it’s free.
Zooming In On Lumen (LUMN)
Lumen’s shares are extremely volatile and have had 62 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.
Lumen is down 26.5% since the beginning of the year, and at $4.13 per share, it is trading 59.2% below its 52-week high of $10.12 from November 2024. Investors who bought $1,000 worth of Lumen’s shares 5 years ago would now be looking at an investment worth $400.87.
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