What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices.
Additionally, dovish signals from Federal Reserve Chair Jerome Powell in his Congressional testimony, reaffirming a "wait-and-see" approach on interest rates, further calmed markets, improving investors' appetite for stocks and other risk 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:
- Sit-Down Dining company Red Robin (NASDAQ: RRGB) jumped 13.1%. Is now the time to buy Red Robin? Access our full analysis report here, it’s free.
- Beverages, Alcohol, and Tobacco company Celsius (NASDAQ: CELH) jumped 7.4%. Is now the time to buy Celsius? Access our full analysis report here, it’s free.
- Ground Transportation company Avis Budget Group (NASDAQ: CAR) jumped 14.3%. Is now the time to buy Avis Budget Group? Access our full analysis report here, it’s free.
- Ground Transportation company Hertz (NASDAQ: HTZ) jumped 10.8%. Is now the time to buy Hertz? Access our full analysis report here, it’s free.
- Renewable Energy company Sunrun (NASDAQ: RUN) jumped 9.4%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
Zooming In On Avis Budget Group (CAR)
Avis Budget Group’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. But moves this big are rare even for Avis Budget Group and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 5.8% after the major indices rebounded, as the Bureau of Labor Statistics report revealed a resilient labor market with non-farm payrolls rising by 139,000 in May 2025, significantly above the consensus forecast of 125,000.
Notably, a stable labor market often supports consumer spending, which is a key driver of economic growth, which means the report could help ease some of the recession fears that gripped markets. The data also supports the soft landing narrative, where the Fed can manage inflation toward its 2% target without significant damage to the economy.
Avis Budget Group is up 109% since the beginning of the year, and at $168.60 per share, has set a new 52-week high. Investors who bought $1,000 worth of Avis Budget Group’s shares 5 years ago would now be looking at an investment worth $7,654.
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