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:
- Regional Banks company Banc of California (NYSE: BANC) jumped 5.2%. Is now the time to buy Banc of California? Access our full analysis report here, it’s free.
- Regional Banks company Ameris Bancorp (NYSE: ABCB) jumped 4.7%. Is now the time to buy Ameris Bancorp? Access our full analysis report here, it’s free.
- Regional Banks company 1st Source (NASDAQ: SRCE) jumped 4.3%. Is now the time to buy 1st Source? Access our full analysis report here, it’s free.
- Specialty Finance company HA Sustainable Infrastructure Capital (NYSE: HASI) jumped 5.2%. Is now the time to buy HA Sustainable Infrastructure Capital? Access our full analysis report here, it’s free.
- Specialty Finance company Encore Capital Group (NASDAQ: ECPG) jumped 4.4%. Is now the time to buy Encore Capital Group? Access our full analysis report here, it’s free.
Zooming In On HA Sustainable Infrastructure Capital (HASI)
HA Sustainable Infrastructure Capital’s shares are somewhat volatile and have had 12 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.
HA Sustainable Infrastructure Capital is up 5.7% since the beginning of the year, but at $28.70 per share, it is still trading 19.7% below its 52-week high of $35.74 from November 2024. Investors who bought $1,000 worth of HA Sustainable Infrastructure Capital’s shares 5 years ago would now be looking at an investment worth $685.78.
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