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:
- Thrifts & Mortgage Finance company WaFd Bank (NASDAQ: WAFD) jumped 4.1%. Is now the time to buy WaFd Bank? Access our full analysis report here, it’s free.
- Thrifts & Mortgage Finance company Ladder Capital (NYSE: LADR) jumped 3.2%. Is now the time to buy Ladder Capital? Access our full analysis report here, it’s free.
- Diversified Banks company Citigroup (NYSE: C) jumped 3%. Is now the time to buy Citigroup? Access our full analysis report here, it’s free.
- HR Software company Paycom (NYSE: PAYC) jumped 3.5%. Is now the time to buy Paycom? Access our full analysis report here, it’s free.
- Footwear company Crocs (NASDAQ: CROX) jumped 3.2%. Is now the time to buy Crocs? Access our full analysis report here, it’s free.
Zooming In On WaFd Bank (WAFD)
WaFd Bank’s shares are not very volatile and have only had 9 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.
WaFd Bank is down 0.9% since the beginning of the year, and at $31.69 per share, it is trading 16.7% below its 52-week high of $38.06 from November 2024. Investors who bought $1,000 worth of WaFd Bank’s shares 5 years ago would now be looking at an investment worth $1,290.
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