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:
- Construction and Maintenance Services company MYR Group (NASDAQ: MYRG) fell 3.3%. Is now the time to buy MYR Group? Access our full analysis report here, it’s free.
- Aerospace company Woodward (NASDAQ: WWD) fell 3.1%. Is now the time to buy Woodward? Access our full analysis report here, it’s free.
- Defense Contractors company Leonardo DRS (NASDAQ: DRS) fell 3.3%. Is now the time to buy Leonardo DRS? Access our full analysis report here, it’s free.
Zooming In On MYR Group (MYRG)
MYR Group’s shares are quite volatile and have had 17 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 28 days ago when the stock gained 4.3% on the news that the U.S. Supreme Court struck down tariffs imposed by the Trump administration, a move expected to lower costs for manufacturers.
In a 6-3 decision, the court ruled that the administration's use of the International Emergency Economic Powers Act of 1977 to justify the tariffs was not applicable. The removal of these tariffs is expected to reduce the cost of imported parts, materials, and equipment, which are crucial inputs for many U.S.-based manufacturing companies. Economists suggest this will alleviate budget pressures on these firms and could also reduce broader inflation concerns, potentially paving the way for accelerated interest rate cuts by the central bank. The ruling is seen as particularly beneficial for small and medium-sized businesses, which have shouldered much of the financial burden from the import duties.
MYR Group is up 17.1% since the beginning of the year, and at $265.50 per share, it is trading close to its 52-week high of $281.01 from February 2026. Investors who bought $1,000 worth of MYR Group’s shares 5 years ago would now be looking at an investment worth $3,804.
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