What Happened?

A number of stocks fell in the afternoon session after markets pulled back with the decline concentrated in the tech space as investors engaged in profit-taking following a robust week that saw the S&P 500 hit a new record. 

Adding to the pressure, new inflation data, specifically the Core PCE, showed an acceleration in July, signaling that rising prices remain a risk despite being in line with expectations. This confluence of factors, including market highs heading into a historically weak September, led to a pullback, with the Nasdaq Composite shedding 1.15%. While the Federal Reserve has hinted at potential rate cuts, the focus on inflation and the jobs market continues to influence investor sentiment.

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:

• Construction and Maintenance Services company MYR Group (NASDAQ: MYRG) fell 3.1%. Is now the time to buy MYR Group? Access our full analysis report here, it’s free.
• Electronic Components company Advanced Energy (NASDAQ: AEIS) fell 4.4%. Is now the time to buy Advanced Energy? Access our full analysis report here, it’s free.
• Renewable Energy company Fluence Energy (NASDAQ: FLNC) fell 3.8%. Is now the time to buy Fluence Energy? Access our full analysis report here, it’s free.
• Renewable Energy company ChargePoint (NYSE: CHPT) fell 3.5%. Is now the time to buy ChargePoint? Access our full analysis report here, it’s free.
• General Industrial Machinery company Crane (NYSE: CR) fell 3.4%. Is now the time to buy Crane? Access our full analysis report here, it’s free.

Zooming In On Advanced Energy (AEIS)

Advanced Energy’s shares are quite volatile and have had 16 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 previous big move we wrote about was 17 days ago when the stock gained 4.9% on the news that an in-line inflation report fueled hopes for interest rate cuts and the U.S. and China agreed to extend their tariff truce. 

The Consumer Price Index (CPI), a key measure of inflation, came in largely as expected, holding steady at 2.7% year-over-year. This reading boosted investor optimism that the Federal Reserve will have room to lower interest rates at its next meeting, which could reduce borrowing costs for companies and consumers. Adding to the positive sentiment, the U.S. and China extended their tariff truce for another 90 days. This development alleviates concerns about renewed trade tensions, which is a significant relief for industrial companies reliant on global supply chains and international sales. Together, these events create a favorable outlook for economic growth, benefiting cyclical sectors like industrials.

Advanced Energy is up 29.8% since the beginning of the year, and at $149.68 per share, it is trading close to its 52-week high of $162.52 from August 2025. Investors who bought $1,000 worth of Advanced Energy’s shares 5 years ago would now be looking at an investment worth $2,019.

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