What Happened?
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East. This development has sent crude oil prices surging, as investors fear potential disruptions to global oil supply and a wider regional conflict.
The conflict intensified market anxiety, compounding volatility, especially in risk assets like stocks, and prompting a pronounced shift toward safe-haven assets.
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:
- Online Marketplace company The RealReal (NASDAQ: REAL) fell 5%. Is now the time to buy The RealReal? Access our full analysis report here, it’s free.
- Analog Semiconductors company Monolithic Power Systems (NASDAQ: MPWR) fell 5.8%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free.
- Online Retail company Carvana (NYSE: CVNA) fell 7%. Is now the time to buy Carvana? Access our full analysis report here, it’s free.
- Department Store company Kohl's (NYSE: KSS) fell 5.5%. Is now the time to buy Kohl's? Access our full analysis report here, it’s free.
- Home Furniture Retailer company Sleep Number (NASDAQ: SNBR) fell 10%. Is now the time to buy Sleep Number? Access our full analysis report here, it’s free.
Zooming In On Sleep Number (SNBR)
Sleep Number’s shares are extremely volatile and have had 92 moves greater than 5% over the last year. But moves this big are rare even for Sleep Number and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 7.8% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Sleep Number is down 53.4% since the beginning of the year, and at $6.97 per share, it is trading 65.9% below its 52-week high of $20.41 from December 2024. Investors who bought $1,000 worth of Sleep Number’s shares 5 years ago would now be looking at an investment worth $175.48.
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