What Happened?
A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East raised concerns over higher inflation and a potential economic slowdown.
The conflict, involving the U.S., Israel, and Iran, caused a surge in energy prices, directly impacting industrial and materials companies by increasing costs for transportation, logistics, and manufacturing. Investors were concerned that sustained high oil prices could put further pressure on inflation, complicating the economic outlook. The broader market sentiment turned negative, with Wall Street heading for a fourth consecutive weekly loss as investors weighed these geopolitical risks. This environment is particularly challenging for cyclical sectors like industrials, which are sensitive to changes in global economic demand and input costs.
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:
- Defense Contractors company BWX (NYSE: BWXT) fell 3.9%. Is now the time to buy BWX? Access our full analysis report here, it’s free.
- Building Materials company Tecnoglass (NYSE: TGLS) fell 3.5%. Is now the time to buy Tecnoglass? Access our full analysis report here, it’s free.
- Gas and Liquid Handling company SPX Technologies (NYSE: SPXC) fell 7.3%. Is now the time to buy SPX Technologies? Access our full analysis report here, it’s free.
- Electronic Components company Novanta (NASDAQ: NOVT) fell 3.6%. Is now the time to buy Novanta? Access our full analysis report here, it’s free.
- Electrical Systems company Kimball Electronics (NASDAQ: KE) fell 3.9%. Is now the time to buy Kimball Electronics? Access our full analysis report here, it’s free.
Zooming In On SPX Technologies (SPXC)
SPX Technologies’s shares are not very volatile and have only had 6 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 previous big move we wrote about was 15 days ago when the stock dropped 5.2% on the news that geopolitical tensions in the Middle East escalated, sent oil prices soaring and reignited inflation concerns. The Dow Jones Industrial Average fell over 1,000 points as the conflict involving the U.S. and Iran disrupted global energy markets, particularly through crucial shipping routes like the Strait of Hormuz. A barrel of Brent crude, the international benchmark, rose toward $85, stoking fears of a new wave of inflation. This spike in energy costs puts the Federal Reserve in a difficult position, as it may complicate future monetary policy decisions and delay potential interest rate cuts. The broad-based sell-off hit multiple sectors, with airline and retail stocks falling sharply on concerns of higher fuel costs and reduced consumer spending power.
SPX Technologies is down 7.8% since the beginning of the year, and at $187.41 per share, it is trading 22.9% below its 52-week high of $243.04 from February 2026. Despite the year-to-date decline, investors who bought $1,000 worth of SPX Technologies’s shares 5 years ago would now be looking at an investment worth $3,173.
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