What Happened?
A number of stocks jumped in the afternoon session after Federal Reserve Governor Christopher Waller signaled support for holding interest rates steady amid emerging signs of disinflation. During a Reuters NEXT Newsmaker interview, Governor Waller stated that if the positive economic trends seen over the last few months continue in the data due over the next two weeks, he would be inclined to support holding the federal funds target rate at its current setting. Waller pointed out that the three-month annualized inflation rate as measured by the Personal Consumption Expenditures (PCE) price index has dropped from 4.76% in February to 3.05% currently, representing an encouraging downward trajectory. However, Waller warned that considerable uncertainty remains regarding how global conflicts, trade policy, and artificial intelligence will affect prices, according to Bloomberg. He cautioned that if upcoming August data shows this disinflationary progress has been fleeting, a rate hike may still be appropriate when the FOMC meets on September 15 and 16. Following Waller’s comments, market-implied odds for a September rate hike dropped to 48.4%, down 15 percentage points from the prior day, according to the CME Group’s FedWatch gauge cited by CNBC.
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:
- Personal Loan company Atlanticus Holdings (NASDAQ: ATLC) jumped 3.9%. Is now the time to buy Atlanticus Holdings? Access our full analysis report here, it’s free.
- Financial Exchanges & Data company Intercontinental Exchange (NYSE: ICE) jumped 3.7%. Is now the time to buy Intercontinental Exchange? Access our full analysis report here, it’s free.
- Diversified Financial Services company PayPal (NASDAQ: PYPL) jumped 3.6%. Is now the time to buy PayPal? Access our full analysis report here, it’s free.
Zooming In On Atlanticus Holdings (ATLC)
Atlanticus Holdings’s shares are extremely volatile and have had 34 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 6 months ago when the stock gained 7.2% on the news that an analyst at Citizens raised the company's stock price target to $102 from $100, while keeping a Market Outperform rating. The firm noted that its earnings assumptions for the coming quarters were largely unchanged. The positive adjustment to the price target was linked to the company's continued progress on its Mercury integration. Management also pointed out that the overall economic and competitive environment remained favorable for the business.
Atlanticus Holdings is up 46.5% since the beginning of the year, but at $97.20 per share, it is still trading 13% below its 52-week high of $111.79 from August 2026. Investors who bought $1,000 worth of Atlanticus Holdings’s shares 5 years ago would now be looking at an investment worth $1,622.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
