What Happened?
Shares of 3D printing company 3D Systems (NYSE: DDD) jumped 11.9% in the morning session after investors reacted to positive news from the broader 3D printing and additive manufacturing industry.
The positive sentiment was fueled by developments from other key players in the sector. For instance, Stratasys, a major company in industrial 3D printing, officially opened a new North American Tooling Center of Excellence in Michigan. This facility was designed to help automakers and manufacturers build tools more efficiently.
Separately, space tech start-up Agnikul Cosmos announced it had set up a new additive manufacturing facility for rocket systems in India. This move aimed to speed up the production of complex designs while cutting costs. These announcements suggested growing adoption and innovation across the 3D printing landscape, which lifted investor confidence in the entire sector.
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What Is The Market Telling Us
3D Systems’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. But moves this big are rare even for 3D Systems and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 5.8% as investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
3D Systems is down 10.3% since the beginning of the year, and at $2.87 per share, it is trading 39.2% below its 52-week high of $4.72 from February 2025. Investors who bought $1,000 worth of 3D Systems’s shares 5 years ago would now be looking at an investment worth $606.68.
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