What Happened?

A number of stocks jumped in the afternoon session after optimism surged over a potential trade truce between the U.S. and China. 

Reports of progress in trade negotiations ahead of a scheduled meeting between the two nations' presidents fueled investor confidence. An agreement would likely ease trade tensions and reduce or remove tariffs that have created economic uncertainty and higher costs for many multinational corporations. Also, optimism improved on expectations that the Federal Reserve will cut interest rates later in the week, especially after recent data showed inflation wasn't heating up as much as expected. Simply put, good news on trade, and the promise of lower borrowing costs created a powerful rally.

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:

• Ground Transportation company Ryder (NYSE: R) jumped 4%. Is now the time to buy Ryder? Access our full analysis report here, it’s free for active Edge members.
• Automobile Manufacturing company Rivian (NASDAQ: RIVN) jumped 3.6%. Is now the time to buy Rivian? Access our full analysis report here, it’s free for active Edge members.
• Air Freight and Logistics company FedEx (NYSE: FDX) jumped 3%. Is now the time to buy FedEx? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Ryder (R)

Ryder’s shares are not very volatile and have only had 7 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 previous big move we wrote about was 4 days ago when the stock dropped 9.8% on the news that the company reported third-quarter 2025 financial results that missed both revenue and earnings per share expectations, signaling a softer quarter for the logistics and transportation company. The company's total revenue of $3.17 billion was flat year over year, narrowly missing Wall Street's consensus forecast. Furthermore, its GAAP earnings per share of $3.33 fell 1.5% short of analyst estimates. The results highlighted ongoing cyclical headwinds in the ground transportation industry, which have impacted demand. While Ryder did manage to beat expectations for adjusted EBITDA, a measure of operational profitability, investors appeared to be more concerned with the misses on the more closely watched top- and bottom-line figures, leading to a negative reaction in the market.

Ryder is up 7.5% since the beginning of the year, but at $168.26 per share, it is still trading 13.4% below its 52-week high of $194.22 from October 2025. Investors who bought $1,000 worth of Ryder’s shares 5 years ago would now be looking at an investment worth $3,346.

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