What Happened?
Shares of online casino and sports betting company Rush Street Interactive (NYSE: RSI) fell 3.5% in the afternoon session after the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs.
The downturn was influenced by a court decision that ruled most of President Trump's tariffs illegal, a development that sent a wave of uncertainty through the market. This was compounded by historical data showing September is traditionally the stock market's weakest month. The negative sentiment was significant enough to overshadow positive company-specific news for Rush Street Interactive.
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 Rush Street Interactive? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Rush Street Interactive’s shares are very volatile and have had 22 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 14 days ago when the stock dropped 3.3% on the news that investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure.
A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
Rush Street Interactive is up 56% since the beginning of the year, and at $21.44 per share, it is trading close to its 52-week high of $22.33 from August 2025. Investors who bought $1,000 worth of Rush Street Interactive’s shares 5 years ago would now be looking at an investment worth $1,859.
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