What Happened?
A number of stocks fell in the afternoon session after Federal Reserve Chair Jerome Powell signaled a cautious stance on future monetary policy decisions during a speech in Chicago, emphasizing that trade tariffs could add upward pressure to inflation in the short term and complicate the Fed's efforts to stabilize the economy. He warned that such trade measures are "likely to move us further away from our goals," referring to the Fed's dual mandate of price stability and maximum employment.
The comments did little to improve sentiment, as major indices were already in the negative territory in the morning session after Nvidia announced it might be unable to sell some high-end chips (including the H20 chips) to China due to export controls and requirements from the Trump administration. As a result, the company planned to take a $5.5 billion charge due to inventory writedowns and canceled sales. Adding to the sector's pressure, chip tool maker ASML posted weak bookings (a key demand indicator) which fell below Wall Street's expectations, noting that tariffs had made the industry's outlook more uncertain.
Taken together, these updates likely fueled investor anxiety, amplifying concerns about global trade tensions, tech sector vulnerability, and the Fed's limited room to maneuver in an increasingly uncertain macro environment.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, following stocks were impacted:
- Analog Semiconductors company Vishay Intertechnology (NYSE: VSH) fell 6.6%. Is now the time to buy Vishay Intertechnology? Access our full analysis report here, it’s free.
- Media company fuboTV (NYSE: FUBO) fell 7.2%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.
- Vehicle Retailer company CarMax (NYSE: KMX) fell 6.2%. Is now the time to buy CarMax? Access our full analysis report here, it’s free.
- Shelf-Stable Food company Hain Celestial (NASDAQ: HAIN) fell 6.8%. Is now the time to buy Hain Celestial? Access our full analysis report here, it’s free.
- Apparel and Accessories company VF Corp (NYSE: VFC) fell 6.5%. Is now the time to buy VF Corp? Access our full analysis report here, it’s free.
Zooming In On fuboTV (FUBO)
fuboTV’s shares are extremely volatile and have had 69 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 8 months ago when the stock gained 35.5% on the news that the company won a preliminary injunction against the launch of the Venu Sports joint venture between The Walt Disney Company, FOX Corp., and Warner Bros. Discovery. Fubo argued that the JV would have monopolized 60%-80% of live broadcast sports content, reducing competition and increasing prices for consumers.
David Gandler, co-founder and CEO, Fubo, commented: "Today's ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options."
fuboTV is up 104% since the beginning of the year, but at $2.87 per share, it is still trading 47.4% below its 52-week high of $5.46 from January 2025. Investors who bought $1,000 worth of fuboTV’s shares 5 years ago would now be looking at an investment worth $358.75.
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