What Happened?
A number of stocks fell in the afternoon session after the major indices continued to retreat amid profit-taking and renewed concerns about tariffs.
Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
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:
- Personal Loan company Sezzle (NASDAQ: SEZL) fell 5.9%. Is now the time to buy Sezzle? Access our full analysis report here, it’s free.
- Document Management company DocuSign (NASDAQ: DOCU) fell 3.7%. Is now the time to buy DocuSign? Access our full analysis report here, it’s free.
- Project Management Software company Asana (NYSE: ASAN) fell 4.4%. Is now the time to buy Asana? Access our full analysis report here, it’s free.
- Cloud Monitoring company PagerDuty (NYSE: PD) fell 5.7%. Is now the time to buy PagerDuty? Access our full analysis report here, it’s free.
- Analog Semiconductors company Vishay Intertechnology (NYSE: VSH) fell 4.4%. Is now the time to buy Vishay Intertechnology? Access our full analysis report here, it’s free.
Zooming In On Sezzle (SEZL)
Sezzle’s shares are extremely volatile and have had 89 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.
The previous big move we wrote about was 11 days ago when the stock gained 7.6% on the news that 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.
Sezzle is up 99.8% since the beginning of the year, but at $90.85 per share, it is still trading 50.1% below its 52-week high of $182.16 from July 2025. Investors who bought $1,000 worth of Sezzle’s shares at the IPO in August 2023 would now be looking at an investment worth $6,723.
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