What Happened?

A number of stocks fell in the afternoon session after investors grew anxious as the U.S. government shutdown extended into its seventh day, creating widespread uncertainty. 

The political stalemate in Washington has tangible consequences for the economy and markets. A key impact is the delay in the release of crucial economic data, including the September jobs report, leaving the Federal Reserve with less information to guide its policy decisions. The shutdown is also causing direct disruptions, with staffing shortages at the Federal Aviation Administration (FAA) leading to widespread delays at major airports. This combination of economic ambiguity and real-world service interruptions has dampened investor confidence across multiple sectors. 

Adding to the unease, Chief Economist at Moody's Analytics, Mark Zandi, warned that 22 states are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position. Also, the latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations are rising, while their outlook on the labor market is deteriorating. Consumers expressed greater concern about potential job losses and expect lower earnings growth, factors that directly impact discretionary spending.

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:

• Specialty Equipment Distributors company Custom Truck One Source (NYSE: CTOS) fell 3.4%. Is now the time to buy Custom Truck One Source? Access our full analysis report here, it’s free for active Edge members.
• Engineered Components and Systems company Enpro (NYSE: NPO) fell 4.7%. Is now the time to buy Enpro? Access our full analysis report here, it’s free for active Edge members.
• Engineered Components and Systems company Regal Rexnord (NYSE: RRX) fell 3.4%. Is now the time to buy Regal Rexnord? Access our full analysis report here, it’s free for active Edge members.
• Construction and Maintenance Services company Great Lakes Dredge & Dock (NASDAQ: GLDD) fell 2.8%. Is now the time to buy Great Lakes Dredge & Dock? Access our full analysis report here, it’s free for active Edge members.
• Infrastructure Distributors company Watsco (NYSE: WSO) fell 3.6%. Is now the time to buy Watsco? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Enpro (NPO)

Enpro’s shares are not very volatile and have only had 8 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.

The previous big move we wrote about was 19 days ago when the stock gained 4.8% on the news that investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge. 

As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels. 

The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.

Enpro is up 31.7% since the beginning of the year, and at $222.84 per share, it is trading close to its 52-week high of $233.51 from October 2025. Investors who bought $1,000 worth of Enpro’s shares 5 years ago would now be looking at an investment worth $3,799.

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