What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official hinted at a potential interest rate cut in December. John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.

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:

• Electronic Components & Manufacturing company Coherent (NYSE: COHR) jumped 4%. Is now the time to buy Coherent? Access our full analysis report here, it’s free for active Edge members.
• Advertising & Marketing Services company Liberty Broadband (NASDAQ: LBRDK) jumped 4.2%. Is now the time to buy Liberty Broadband? Access our full analysis report here, it’s free for active Edge members.
• Government & Technical Consulting company Maximus (NYSE: MMS) jumped 4.1%. Is now the time to buy Maximus? Access our full analysis report here, it’s free for active Edge members.
• Business Process Outsourcing & Consulting company CBIZ (NYSE: CBZ) jumped 3.7%. Is now the time to buy CBIZ? Access our full analysis report here, it’s free for active Edge members.
• IT Distribution & Solutions company ePlus (NASDAQ: PLUS) jumped 3.5%. Is now the time to buy ePlus? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Liberty Broadband (LBRDK)

Liberty Broadband’s shares are not very volatile and have only had 8 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.

Liberty Broadband is down 38.1% since the beginning of the year, and at $47 per share, it is trading 53.6% below its 52-week high of $101.29 from May 2025. Investors who bought $1,000 worth of Liberty Broadband’s shares 5 years ago would now be looking at an investment worth $295.97.

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