What Happened?
A number of stocks fell in the afternoon session after President Trump criticized the Federal Reserve's approach to interest rate cuts, warning that the pace was slow and could hinder economic growth. Trump's comments added pressure to an already sensitive market, raising concerns about political interference in monetary policy.
Meanwhile, Fed Chair Jerome Powell maintained a cautious stance the previous week, highlighting the difficulty of balancing the dual mandate of steady employment and price stability amid the escalating trade tension. Investor sentiment was further dampened by the absence of constructive progress in trade negotiations, especially US-China relations which took a turn for the worse in the previous week.
Overall, the outlook seemed more unclear heading into the first quarter 2025 earnings season, as a combination of hard to predict monetary policy and unresolved trade tensions weighed on business confidence.
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:
- Online Retail company Carvana (NYSE: CVNA) fell 5.7%. Is now the time to buy Carvana? Access our full analysis report here, it’s free.
- Discount Retailer company Burlington (NYSE: BURL) fell 5%. Is now the time to buy Burlington? Access our full analysis report here, it’s free.
- Home Improvement Retailer company Floor And Decor (NYSE: FND) fell 5.5%. Is now the time to buy Floor And Decor? Access our full analysis report here, it’s free.
- Apparel Retailer company Urban Outfitters (NASDAQ: URBN) fell 5.1%. Is now the time to buy Urban Outfitters? Access our full analysis report here, it’s free.
- Specialty Retail company National Vision (NASDAQ: EYE) fell 6.1%. Is now the time to buy National Vision? Access our full analysis report here, it’s free.
Zooming In On National Vision (EYE)
National Vision’s shares are quite volatile and have had 18 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.
National Vision is up 2.1% since the beginning of the year, but at $11 per share, it is still trading 41.6% below its 52-week high of $18.84 from April 2024. Investors who bought $1,000 worth of National Vision’s shares 5 years ago would now be looking at an investment worth $464.33.
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