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CRA and Kforce Shares Are Falling, What You Need To Know

CRAI Cover Image

What Happened?

A number of stocks fell in the afternoon session after the U.S. government shutdown halted the release of crucial economic data, creating uncertainty for investors and policymakers. 

In its second week, the shutdown had stopped the flow of key federal figures on job creation and inflation. This came at a critical time, as the job market showed signs of slowing, and there were concerns that further declines could drag down the broader economy. 

In addition, Jamie Dimon raised concerns about a market correction. He added, "I would give it a higher probability than I think is probably priced in the market and by others, so if the market is pricing in 10%, I would ... say it's more like 30%." 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:

Zooming In On Kforce (KFRC)

Kforce’s shares are not very volatile and have only had 9 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 2 days ago when the stock dropped 2.9% on the news that broader macroeconomic concerns, including an ongoing government shutdown and anticipation of commentary from Federal Reserve officials, began to weigh on investor sentiment. After reaching new record highs, major U.S. indices like the S&P 500 and Nasdaq experienced a slight retreat. This pause came as investors grappled with the potential economic impact of a partial government shutdown, which had dampened consumer confidence and delayed the release of key economic data, such as September's nonfarm payrolls. The market appeared to be in a holding pattern as traders anticipated signals from Federal Reserve officials, looking for clues on future monetary policy. The caution in the broader market suggests that wider economic anxieties are currently overriding recent sector-specific optimism.

Kforce is down 47.7% since the beginning of the year, and at $28.97 per share, it is trading 53.6% below its 52-week high of $62.47 from November 2024. Investors who bought $1,000 worth of Kforce’s shares 5 years ago would now be looking at an investment worth $797.85.

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