What Happened?
Shares of upscale restaurant company The One Group Hospitality (NASDAQ: STKS) fell 3.8% in the afternoon session after the stock was caught in a broader market downturn that saw major indexes fall sharply.
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 The ONE Group? Access our full analysis report here, it’s free.
What Is The Market Telling Us
The ONE Group’s shares are extremely volatile and have had 49 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 3.3% on the news that Federal Reserve Chair Jerome Powell signaled a potential interest rate cut at the central bank's upcoming September meeting.
The comments were made during Powell's highly anticipated speech at the annual Jackson Hole symposium, a gathering of central bankers. In response to the news, major U.S. stock indices, including the S&P 500 and the Dow Jones Industrial Average, surged, with the latter hitting a record intraday high. A potential rate cut generally boosts investor confidence as lower borrowing costs can stimulate economic activity and support corporate profits. The positive sentiment lifted stocks across various sectors, including The ONE Group, which moved in line with the overall market trend.
The ONE Group is down 4.9% since the beginning of the year, and at $2.69 per share, it is trading 47.6% below its 52-week high of $5.13 from July 2025. Investors who bought $1,000 worth of The ONE Group’s shares 5 years ago would now be looking at an investment worth $1,454.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
