What Happened?

A number of stocks fell in the afternoon session after investors paused a record-setting rally amid uncertainty from the ongoing U.S. government shutdown. 

The S&P 500 and Nasdaq pulled back from all-time highs as the shutdown entered its second week, creating a data vacuum for investors. The political impasse has halted the release of vital economic indicators, including key reports on jobs and inflation. Without this crucial information, it becomes more difficult for the Federal Reserve and market participants to accurately assess the nation's economic health. This uncertainty prompted traders to take profits following a prolonged period of gains. In addition, Jamie Dimon raised concerns about a market correction. He added, “I would give it a higher probability than I think is probably priced in the market and by others, so if the market is pricing in 10%, I would ... say it’s more like 30%.” Dimon's remarks are closely watched given his influence as head of one of the nation's largest banks.

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:

• Broadcasting company iHeartMedia (NASDAQ: IHRT) fell 3.1%. Is now the time to buy iHeartMedia? Access our full analysis report here, it’s free for active Edge members.
• Gaming Solutions company Inspired (NASDAQ: INSE) fell 3.2%. Is now the time to buy Inspired? Access our full analysis report here, it’s free for active Edge members.
• Consumer Electronics company Sonos (NASDAQ: SONO) fell 2.5%. Is now the time to buy Sonos? Access our full analysis report here, it’s free for active Edge members.
• Specialized Consumer Services company 1-800-FLOWERS (NASDAQ: FLWS) fell 2.8%. Is now the time to buy 1-800-FLOWERS? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Columbia Sportswear (NASDAQ: COLM) fell 3.4%. Is now the time to buy Columbia Sportswear? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Columbia Sportswear (COLM)

Columbia Sportswear’s shares are somewhat volatile and have had 12 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 biggest move we wrote about over the last year was 2 months ago when the stock dropped 14.6% on the news that the company issued a disappointing financial forecast for its third quarter and the full year, which overshadowed a second-quarter earnings beat. 

The outdoor apparel maker projected third-quarter earnings and revenue that both fell below analysts' expectations. For the full year, Columbia forecasted that sales would range from a 1% decline to a 1% increase compared to the prior year. The company's management pointed to soft business trends in the United States and also signaled an expected tariff impact of $35 million to $40 million for 2025. This weak outlook came amid broader market concerns over new tariffs and a softer U.S. jobs report. In response to the news, analysts at both Citi and UBS lowered their price targets on the stock, citing the sluggish U.S. performance.

Columbia Sportswear is down 36.6% since the beginning of the year, and at $52.41 per share, it is trading 43.1% below its 52-week high of $92.08 from February 2025. Investors who bought $1,000 worth of Columbia Sportswear’s shares 5 years ago would now be looking at an investment worth $554.43.

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