What Happened?
A number of stocks jumped in the afternoon session after markets continued to rally amid growing speculation of an impending interest rate cut by the Federal Reserve. Following a favorable Consumer Price Index (CPI) report, investors are increasingly betting on a rate reduction next month, a sentiment amplified by U.S. Treasury Secretary Scott Bessent's call for a significant cut. This has fueled a 'risk-on' environment across Wall Street. Lower interest rates are typically beneficial for growth-oriented sectors like healthcare, as they reduce the cost of borrowing for research and innovation and increase the present value of future earnings.
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:
- Senior Health, Home Health & Hospice company Brookdale (NYSE: BKD) jumped 3%. Is now the time to buy Brookdale? Access our full analysis report here, it’s free.
- Healthcare Technology for Providers company Evolent Health (NYSE: EVH) jumped 3.8%. Is now the time to buy Evolent Health? Access our full analysis report here, it’s free.
- Drug Development Inputs & Services company Fortrea (NASDAQ: FTRE) jumped 6.7%. Is now the time to buy Fortrea? Access our full analysis report here, it’s free.
- Genomics & Sequencing company 10x Genomics (NASDAQ: TXG) jumped 10%. Is now the time to buy 10x Genomics? Access our full analysis report here, it’s free.
- Branded Pharmaceuticals company Organon (NYSE: OGN) jumped 3.1%. Is now the time to buy Organon? Access our full analysis report here, it’s free.
Zooming In On 10x Genomics (TXG)
10x Genomics’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for 10x Genomics and indicate this news significantly impacted the market’s perception of the business.
10x Genomics is down 2.3% since the beginning of the year, and at $13.87 per share, it is trading 41% below its 52-week high of $23.49 from August 2024. Investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at an investment worth $132.39.
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