What Happened?
Shares of denim clothing company Levi's (NYSE: LEVI) jumped 3.2% in the morning session after the broader market rallied on hopes for lower interest rates. The rally was sparked by Federal Reserve Chair Jerome Powell's highly anticipated speech at a central bankers' symposium in Jackson Hole, Wyoming. Powell signaled that the central bank's view on the “balance of risks” for the economy appears to be shifting, citing “sweeping changes” in trade, immigration, and tax policy. Investors interpreted these comments as a strong hint that interest rate cuts could be imminent, which is generally positive for stocks as lower rates can stimulate economic activity. The broader market reacted strongly, with the Dow Jones Industrial Average soaring over 700 points and the S&P 500 erasing its losses for the week.
After the initial pop the shares cooled down to $21.35, up 2.8% from previous close.
Is now the time to buy Levi's? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Levi’s shares are not very volatile and have only had 6 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 18 days ago when the stock gained 3% on the news that markets rebounded following a sharp sell-off in the previous trading session as weaker-than-expected U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve. The July Nonfarm Payrolls report revealed a gain of only 73,000 jobs, significantly below the 110,000 expected. Compounding the news, prior months' figures were revised downward by over 250,000 jobs. This data, indicating a cooling labor market, has led investors to dramatically increase bets on a September interest rate cut by the Federal Reserve, with the probability jumping to over 80% according to the CME FedWatch Tool. The prospect of lower borrowing costs typically stimulates economic activity and boosts consumer spending on non-essential goods and services, which directly benefits companies in the consumer discretionary space.
Levi's is up 22.5% since the beginning of the year, and at $21.35 per share, it is trading close to its 52-week high of $21.95 from July 2025. Investors who bought $1,000 worth of Levi’s shares 5 years ago would now be looking at an investment worth $1,681.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
