What Happened?

A number of stocks fell in the afternoon session after investors reacted to escalating trade tensions between the US and China following President Trump's announcement of a potential 'massive increase' in tariffs on Chinese imports. 

Earlier in the week, China announced new export controls on the critical minerals. Beijing's Commerce Ministry stated that foreign suppliers now need government approval to export products containing certain rare-earth materials. These materials are essential for producing high-tech goods, including computer chips, electric vehicles, and defense technology. Analysts viewed the move as a strategic assertion of China's dominance in the global rare earth supply chain, particularly amid ongoing trade tensions and ahead of an anticipated meeting between the US and Chinese presidents.

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:

• Regional Banks company BOK Financial (NASDAQ: BOKF) fell 3.1%. Is now the time to buy BOK Financial? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Independent Bank (NASDAQ: INDB) fell 3.1%. Is now the time to buy Independent Bank? Access our full analysis report here, it’s free for active Edge members.

Zooming In On BOK Financial (BOKF)

BOK Financial’s shares are not very volatile and have only had 2 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 about 2 months ago when the stock gained 4.4% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. 

Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

BOK Financial is up 2.3% since the beginning of the year, and at $109.27 per share, it is trading close to its 52-week high of $119.67 from November 2024. Investors who bought $1,000 worth of BOK Financial’s shares 5 years ago would now be looking at an investment worth $1,894.

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