What Happened?

A number of stocks fell in the afternoon session after a government report showed significantly weaker job growth over the past year than initially reported, fueling concerns about the health of the economy. 

The Bureau of Labor Statistics announced a preliminary annual revision indicating that the U.S. economy created 911,000 fewer jobs in the 12 months ending March 2025 than previously stated. This significant downward adjustment means the economy added only about half the number of jobs initially reported during that period. While the revision is a routine process and doesn't reflect current conditions, it has amplified fears of a faltering labor market. Compounding these concerns, a recent Federal Reserve Bank of New York poll revealed that workers' confidence in finding a new job has fallen to its lowest level since the survey began in 2013, raising fears of a potential recession. 

JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. 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:

• Specialty Finance company Oxford Lane Capital (NASDAQ: OXLC) fell 4.8%. Is now the time to buy Oxford Lane Capital? Access our full analysis report here, it’s free.
• Student Loan company Sallie Mae (NASDAQ: SLM) fell 3.7%. Is now the time to buy Sallie Mae? Access our full analysis report here, it’s free.
• Diversified Financial Services company NerdWallet (NASDAQ: NRDS) fell 3.5%. Is now the time to buy NerdWallet? Access our full analysis report here, it’s free.

Zooming In On Oxford Lane Capital (OXLC)

Oxford Lane Capital’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.

Oxford Lane Capital is down 33.1% since the beginning of the year, and at $17.02 per share, it is trading 37.6% below its 52-week high of $27.25 from November 2024. Investors who bought $1,000 worth of Oxford Lane Capital’s shares 5 years ago would now be looking at an investment worth $763.08.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.