What Happened?

A number of stocks jumped in the afternoon session after a cooler-than-expected inflation report fueled optimism for potential Federal Reserve rate cuts. The September Consumer Price Index (CPI) rose 3.0% year-over-year, coming in just below the 3.1% analysts had forecast. While still above the Federal Reserve's 2% target, investors interpreted the slight cooling as a sign that inflationary pressures may be easing, potentially giving the central bank room to consider interest rate cuts in the near future. Sectors that are typically sensitive to interest rates, such as real estate and utilities, saw a notable lift. Lower rates can reduce borrowing costs and increase the appeal of dividend-paying stocks, boosting investor confidence in these areas.

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:

• Toys and Electronics company Funko (NASDAQ: FNKO) jumped 3.3%. Is now the time to buy Funko? Access our full analysis report here, it’s free for active Edge members.
• Real Estate Services company Opendoor (NASDAQ: OPEN) jumped 15.1%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free for active Edge members.
• Home Furnishings company Purple (NASDAQ: PRPL) jumped 4.8%. Is now the time to buy Purple? Access our full analysis report here, it’s free for active Edge members.
• Real Estate Services company The Real Brokerage (NASDAQ: REAX) jumped 1.6%. Is now the time to buy The Real Brokerage? Access our full analysis report here, it’s free for active Edge members.
• Consumer Electronics company Peloton (NASDAQ: PTON) jumped 2.2%. Is now the time to buy Peloton? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Opendoor (OPEN)

Opendoor’s shares are extremely volatile and have had 97 moves greater than 5% over the last year. But moves this big are rare even for Opendoor and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 4 days ago when the stock gained 5.2% on the news that Morgan Stanley significantly raised its price target on the company's shares to $6 from $2, though it kept an Equal Weight rating. The move from the investment firm signaled increased confidence ahead of the company's upcoming third-quarter earnings report. Adding to the positive sentiment, Opendoor also announced a key leadership addition. The real estate technology firm hired Giang LeGrice, previously the vice-president of operations at Shopify, to lead its operations. Opendoor's new leader, a former Shopify executive himself, described LeGrice as a "world-class leader.".

Opendoor is up 401% since the beginning of the year, but at $7.97 per share, it is still trading 24.2% below its 52-week high of $10.52 from September 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $443.27.

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