What Happened?
A number of stocks jumped in the afternoon session after a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve.
The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy. Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.
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:
- Renewable Energy company Fluence Energy (NASDAQ: FLNC) jumped 2.6%. Is now the time to buy Fluence Energy? Access our full analysis report here, it’s free.
- Renewable Energy company Bloom Energy (NYSE: BE) jumped 3%. Is now the time to buy Bloom Energy? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Lucid (NASDAQ: LCID) jumped 2.7%. Is now the time to buy Lucid? Access our full analysis report here, it’s free.
- Renewable Energy company Sunrun (NASDAQ: RUN) jumped 4%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
- Custom Parts Manufacturing company 3D Systems (NYSE: DDD) jumped 6.4%. Is now the time to buy 3D Systems? Access our full analysis report here, it’s free.
Zooming In On 3D Systems (DDD)
3D Systems’s shares are extremely volatile and have had 71 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 3 days ago when the stock gained 11.9% as 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.
3D Systems is down 2.8% since the beginning of the year, and at $3.11 per share, it is trading 34.1% 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 $649.27.
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