What Happened?
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals. This move has sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.
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:
- Automation Software company Appian (NASDAQ: APPN) fell 4.7%. Is now the time to buy Appian? Access our full analysis report here, it’s free.
- Consumer Subscription company Udemy (NASDAQ: UDMY) fell 4.7%. Is now the time to buy Udemy? Access our full analysis report here, it’s free.
- Gaming Solutions company DraftKings (NASDAQ: DKNG) fell 3.8%. Is now the time to buy DraftKings? Access our full analysis report here, it’s free.
- Financial Technology company Remitly (NASDAQ: RELY) fell 5.2%. Is now the time to buy Remitly? Access our full analysis report here, it’s free.
- Vehicle Retailer company CarMax (NYSE: KMX) fell 3.6%. Is now the time to buy CarMax? Access our full analysis report here, it’s free.
Zooming In On Remitly (RELY)
Remitly’s shares are somewhat volatile and have had 10 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.
Remitly is down 22.5% since the beginning of the year, and at $17.36 per share, it is trading 36% below its 52-week high of $27.14 from February 2025. Investors who bought $1,000 worth of Remitly’s shares at the IPO in September 2021 would now be looking at an investment worth $358.31.
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