What Happened?
Shares of IT distribution giant Ingram Micro (NYSE: INGM) fell 2.6% in the afternoon session after a broader tech swoon as climbing bond yields pressured the market.
Investors also 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. Is now the time to buy Ingram Micro? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Ingram Micro’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.
The previous big move we wrote about was 11 days ago when the stock gained 4.8% 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.
Ingram Micro is down 3.4% since the beginning of the year, and at $19.12 per share, it is trading 22.5% below its 52-week high of $24.67 from February 2025. Investors who bought $1,000 worth of Ingram Micro’s shares at the IPO in October 2024 would now be looking at an investment worth $777.13.
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