What Happened?

A number of stocks fell in the afternoon session after President Trump threatened a 'massive increase in tariffs' on Chinese imports, reigniting fears of a renewed US-China trade war. 

The unexpected comments, made in response to Beijing's plans to tighten export controls on rare-earth minerals, reversed early market gains and sent major indices tumbling. Rare-earth minerals are crucial for components used in the electronics and automotive industries. The tech sector led the losses, with the tech-rich Nasdaq Composite falling 1.7%. The threat jolted Wall Street, sparking concerns that escalating trade tensions could disrupt global supply chains and increase costs for many technology companies that rely on components or manufacturing from China.

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:

• Industrial & Environmental Services company Pitney Bowes (NYSE: PBI) fell 4%. Is now the time to buy Pitney Bowes? Access our full analysis report here, it’s free for active Edge members.
• Terrestrial Telecommunication Services company Cogent (NASDAQ: CCOI) fell 3.4%. Is now the time to buy Cogent? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components & Manufacturing company Amphenol (NYSE: APH) fell 2.6%. Is now the time to buy Amphenol? Access our full analysis report here, it’s free for active Edge members.
• Business Process Outsourcing & Consulting company Concentrix (NASDAQ: CNXC) fell 4.1%. Is now the time to buy Concentrix? Access our full analysis report here, it’s free for active Edge members.
• Hardware & Infrastructure company Diebold Nixdorf (NYSE: DBD) fell 4.7%. Is now the time to buy Diebold Nixdorf? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Diebold Nixdorf (DBD)

Diebold Nixdorf’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock dropped 3.2% on the news that a surprisingly weak U.S. jobs report was released, fueling concerns about a slowing economy. 

The U.S. economy added only 73,000 jobs, falling significantly short of economists' expectations, while figures for May and June were revised down, erasing 258,000 previously reported jobs. The professional and business services industry itself shed 14,000 jobs. This data points to a cooling labor market, fueling concerns of a slowing economy. A weaker economic outlook often leads to reduced corporate spending on key services like IT consulting and professional staffing, which directly impacts the sector's revenue and growth prospects. The report immediately increased investor expectations of an interest rate cut by the Federal Reserve.

Diebold Nixdorf is up 32.2% since the beginning of the year, but at $56.19 per share, it is still trading 10.9% below its 52-week high of $63.09 from August 2025. Investors who bought $1,000 worth of Diebold Nixdorf’s shares at the IPO in August 2023 would now be looking at an investment worth $2,731.

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