What Happened?
A number of stocks jumped in the morning session after reports revealed President Trump was willing to end the military conflict with Iran.
The news, reported by The Wall Street Journal, indicated the president's willingness to wind down hostilities, which sent U.S. stocks soaring across the board. An end to the war would significantly lower geopolitical risk and uncertainty, a positive development for the global economy. For the financial sector, a more stable economic environment often translates into stronger loan growth and better credit quality. Lower energy prices resulting from de-escalation can also boost consumer spending and business investment, further benefiting banks and other financial institutions.
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:
- Financial Exchanges & Data company FactSet (NYSE: FDS) jumped 5.8%. Is now the time to buy FactSet? Access our full analysis report here, it’s free.
- Custody Bank company WisdomTree (NYSE: WT) jumped 4.2%. Is now the time to buy WisdomTree? Access our full analysis report here, it’s free.
- Investment Banking & Brokerage company Jefferies (NYSE: JEF) jumped 3.1%. Is now the time to buy Jefferies? Access our full analysis report here, it’s free.
- Investment Banking & Brokerage company Evercore (NYSE: EVR) jumped 3.4%. Is now the time to buy Evercore? Access our full analysis report here, it’s free.
- Personal Loan company Affirm (NASDAQ: AFRM) jumped 3%. Is now the time to buy Affirm? Access our full analysis report here, it’s free.
Zooming In On FactSet (FDS)
FactSet’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 dropped 3.5% on the news that the Asset Management sector was muted amid lingering fears of bad loans and redemptions within the private credit sector.
These concerns contributed to a broader market downturn as investors grew cautious. The anxiety centers on Business Development Companies (“BDCs”) and the health of the private credit market, where firms lend money directly to companies. Fears that these loans could go bad, coupled with the risk of investors pulling their money out (redemptions), have created a negative sentiment around the sector, impacting asset managers involved in this space.
FactSet is down 23.9% since the beginning of the year, and at $216.84 per share, it is trading 54.2% below its 52-week high of $473.32 from May 2025. Investors who bought $1,000 worth of FactSet’s shares 5 years ago would now be looking at only $702.65.
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