What Happened?
A number of stocks fell in the afternoon session after a weaker-than-expected U.S. consumer confidence report for September sparked concerns about the economic outlook.
The Conference Board's Consumer Confidence Index dropped to 94.2, its lowest reading since April. This decline was driven by a more pessimistic view of both current and future conditions. The Present Situation Index, which assesses current business and labor market conditions, fell by 7.0 points. More critically, the Expectations Index, a gauge of the short-term outlook, also decreased. This index has remained below 80 since February 2025, a level that historically signals a potential recession on the horizon. The weakening confidence reflects consumers' growing concerns about the labor market, which could translate to reduced spending and broader economic slowing.
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 Nextracker (NASDAQ: NXT) fell 2.8%. Is now the time to buy Nextracker? Access our full analysis report here, it’s free.
- Maintenance and Repair Distributors company DXP (NASDAQ: DXPE) fell 3.1%. Is now the time to buy DXP? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Rivian (NASDAQ: RIVN) fell 4%. Is now the time to buy Rivian? Access our full analysis report here, it’s free.
- Internet of Things company SmartRent (NYSE: SMRT) fell 2.8%. Is now the time to buy SmartRent? Access our full analysis report here, it’s free.
- Energy Products and Services company FTAI Infrastructure (NASDAQ: FIP) fell 3%. Is now the time to buy FTAI Infrastructure? Access our full analysis report here, it’s free.
Zooming In On Rivian (RIVN)
Rivian’s shares are extremely volatile and have had 32 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 dropped 2.5% on the news that reports surfaced that its software joint venture with Volkswagen had run into significant problems, creating delays for the German automaker's new electric models.
According to Germany's Manager Magazin, Audi's Q8 e-tron and electric A4 models faced delays of at least a year, while Porsche's electric K1 SUV was postponed indefinitely. This development cast a shadow over a key strategic partnership for the electric vehicle maker. Compounding the negative sentiment, Rivian also lowered its full-year delivery forecast to between 40,000 and 46,000 vehicles, a drop from the 51,579 units delivered in 2024. The company also widened its projected EBITDA loss for 2025 to a range of $2 billion to $2.25 billion, signaling deeper financial headwinds ahead.
Rivian is up 10.6% since the beginning of the year, but at $14.66 per share, it is still trading 13.4% below its 52-week high of $16.92 from May 2025. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $145.54.
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