What Happened?
A number of stocks jumped in the afternoon session after key inflation data (PCE) aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve.
The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy.
Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.
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:
- Leisure Facilities company Sphere Entertainment (NYSE: SPHR) jumped 3.2%. Is now the time to buy Sphere Entertainment? Access our full analysis report here, it’s free.
- Consumer Electronics company GoPro (NASDAQ: GPRO) jumped 6.6%. Is now the time to buy GoPro? Access our full analysis report here, it’s free.
- Real Estate Services company Offerpad (NYSE: OPAD) jumped 2.3%. Is now the time to buy Offerpad? Access our full analysis report here, it’s free.
- Consumer Electronics company Peloton (NASDAQ: PTON) jumped 3.4%. Is now the time to buy Peloton? Access our full analysis report here, it’s free.
- Apparel and Accessories company Under Armour (NYSE: UAA) jumped 4.1%. Is now the time to buy Under Armour? Access our full analysis report here, it’s free.
Zooming In On GoPro (GPRO)
GoPro’s shares are extremely volatile and have had 67 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 3 days ago when the stock gained 1.9% on the news that the company announced a lineup of three new products: the MAX2 360 camera, the LIT HERO lifestyle camera, and the Fluid Pro AI gimbal.
The reveal was highly awaited, as the action camera giant had teased a major product drop for this date across its social media channels, sparking significant buzz among investors. The new flagship, MAX2, shoots in stunning 8K resolution and features innovative replaceable lenses. The launch of these new cameras and accessories represents a key effort to drive new sales and refresh its product offerings.
GoPro is up 110% since the beginning of the year, but at $2.31 per share, it is still trading 19.7% below its 52-week high of $2.88 from September 2025. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $517.32.
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