What Happened?

A number of stocks jumped in the afternoon session after the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices. 

This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.

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:

• General Industrial Machinery company GE Aerospace (NYSE: GE) jumped 5.1%. Is now the time to buy GE Aerospace? Access our full analysis report here, it’s free.
• Electrical Systems company GE Vernova (NYSE: GEV) jumped 5.3%. Is now the time to buy GE Vernova? Access our full analysis report here, it’s free.
• Industrial Packaging company International Paper (NYSE: IP) jumped 5.1%. Is now the time to buy International Paper? Access our full analysis report here, it’s free.
• Professional Tools and Equipment company Lincoln Electric (NASDAQ: LECO) jumped 5.5%. Is now the time to buy Lincoln Electric? Access our full analysis report here, it’s free.
• Home Construction Materials company Griffon (NYSE: GFF) jumped 5.2%. Is now the time to buy Griffon? Access our full analysis report here, it’s free.

Zooming In On Lincoln Electric (LECO)

Lincoln Electric’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock gained 4.1% on the news that the stock's positive momentum continued as the company announced a major partnership with the U.S. Navy and General Dynamics to enhance submarine production, and an analyst raised the stock's price target. This new partnership involved using advanced 3D printing, also known as additive manufacturing, to create components for the Navy's nuclear-powered submarines. The goal of this effort was to speed up the construction and delivery of these essential vessels by reducing long lead times for critical parts. The funding came from the Maritime Industrial Base Program, which aimed to strengthen the country's submarine construction capabilities. Adding to the positive news, analysts at Baird also increased their price target on Lincoln Electric's stock to $283 from $280 while keeping an Outperform rating.

Lincoln Electric is up 22.7% since the beginning of the year, and at $299 per share, has set a new 52-week high. Investors who bought $1,000 worth of Lincoln Electric’s shares 5 years ago would now be looking at an investment worth $2,574.

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