What Happened?
A number of stocks jumped in the afternoon session after 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.
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:
- Digital Media & Content Platforms company Vimeo (NASDAQ: VMEO) jumped 5.8%. Is now the time to buy Vimeo? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company WEBTOON (NASDAQ: WBTN) jumped 7.4%. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free.
- Hardware & Infrastructure company Xerox (NASDAQ: XRX) jumped 6%. Is now the time to buy Xerox? Access our full analysis report here, it’s free.
- Specialized Technology company Zebra (NASDAQ: ZBRA) jumped 4.6%. Is now the time to buy Zebra? Access our full analysis report here, it’s free.
- Custody Bank company StepStone Group (NASDAQ: STEP) jumped 4.9%. Is now the time to buy StepStone Group? Access our full analysis report here, it’s free.
Zooming In On WEBTOON (WBTN)
WEBTOON’s shares are extremely volatile and have had 38 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 3 days ago when the stock dropped 6.8% on the news that investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure.
A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
WEBTOON is up 11.3% since the beginning of the year, but at $15.13 per share, it is still trading 10.8% below its 52-week high of $16.96 from August 2025. Investors who bought $1,000 worth of WEBTOON’s shares at the IPO in June 2024 would now be looking at an investment worth $657.83.
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