What Happened?

A number of stocks fell in the afternoon session after investors continued to question how much more the superstar stocks can add to their already spectacular gains. 

The main story? Investors are cashing in on a good run and feeling a bit cautious. After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced. 

There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.

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:

• Electronic Components & Manufacturing company Amphenol (NYSE: APH) fell 4.4%. Is now the time to buy Amphenol? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components & Manufacturing company Flex (NASDAQ: FLEX) fell 5.6%. Is now the time to buy Flex? Access our full analysis report here, it’s free for active Edge members.
• Digital Media & Content Platforms company Rumble (NASDAQ: RUM) fell 4%. Is now the time to buy Rumble? Access our full analysis report here, it’s free for active Edge members.
• Hardware & Infrastructure company Pure Storage (NYSE: PSTG) fell 5.1%. Is now the time to buy Pure Storage? Access our full analysis report here, it’s free for active Edge members.
• Digital Media & Content Platforms company Getty Images (NYSE: GETY) fell 5.1%. Is now the time to buy Getty Images? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Flex (FLEX)

Flex’s shares are quite volatile and have had 16 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 previous big move we wrote about was about 23 hours ago when the stock gained 2.5% as investors continued to pile into value-oriented names amid growing valuation concerns in growth stocks. 

This shift reflects growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, which were perceived to be more reasonably priced. Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over. The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.

Flex is up 53.5% since the beginning of the year, but at $59.28 per share, it is still trading 10.3% below its 52-week high of $66.10 from October 2025. Investors who bought $1,000 worth of Flex’s shares 5 years ago would now be looking at an investment worth $3,729.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.