What Happened?
A number of stocks fell in the afternoon session after the broader market fell as a spike in oil prices and Treasury yields rattled investors.
The sell-off was triggered by escalating geopolitical tensions related to the Iran conflict, which pushed oil prices up. This surge in energy costs fueled concerns about war-related inflation, leading to a significant reaction in the bond market.
The 10-year Treasury note yield jumped nine basis points to 4.57%, its highest level in a year. Investors were concerned that persistent inflation could lead to further interest rate hikes, putting pressure on corporate valuations and prompting a pullback from record highs.
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:
- Aerospace company Boeing (NYSE: BA) fell 3%. Is now the time to buy Boeing? Access our full analysis report here, it’s free.
- Renewable Energy company EVgo (NASDAQ: EVGO) fell 2.6%. Is now the time to buy EVgo? Access our full analysis report here, it’s free.
- Gas and Liquid Handling company Standex (NYSE: SXI) fell 3.2%. Is now the time to buy Standex? Access our full analysis report here, it’s free.
- Gas and Liquid Handling company Donaldson (NYSE: DCI) fell 2.5%. Is now the time to buy Donaldson? Access our full analysis report here, it’s free.
- Gas and Liquid Handling company Flowserve (NYSE: FLS) fell 3%. Is now the time to buy Flowserve? Access our full analysis report here, it’s free.
Zooming In On Standex (SXI)
Standex’s shares are somewhat volatile and have had 10 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 biggest move we wrote about over the last year was 5 months ago when the stock gained 7.5% on the news that the Federal Reserve lowered its benchmark interest rate by a quarter-percentage point, signaling a more accommodative monetary policy.
This dovish action, combined with highly accommodating signals from Chair Jerome Powell and the Federal Open Market Committee (FOMC), sent the Dow Jones Industrial Average and S&P 500 surging. The market's bullish reaction was rooted in several key takeaways from the Fed's announcement. Most significantly, the central bank confirmed it would begin expanding its balance sheet by buying short-term bonds, a move that injects critical liquidity and lowers short-term Treasury yields.
Furthermore, the Fed signaled a shift in priority by removing language that described the labor market as "remaining low," suggesting it would be more focused on supporting economic growth.
While the Fed's official forecast projected only one cut for the next year, traders immediately priced in the expectation of more aggressive easing, banking on at least two rate reductions. This widespread anticipation of sustained, low borrowing costs and the virtual certainty that rate hikes would be off the table boosted corporate valuations and created powerful momentum for the equity market rally.
Standex is up 11.3% since the beginning of the year, but at $250.25 per share, it is still trading 10.3% below its 52-week high of $278.89 from April 2026. Investors who bought $1,000 worth of Standex’s shares 5 years ago would now be looking at an investment worth $2,443.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
