What Happened?

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. 

The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns. 

Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.

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:

• Travel and Vacation Providers company United Airlines (NASDAQ: UAL) jumped 5.9%. Is now the time to buy United Airlines? Access our full analysis report here, it’s free.
• Digital Media & Content Platforms company WEBTOON (NASDAQ: WBTN) jumped 5.9%. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free.
• Advertising & Marketing Services company Magnite (NASDAQ: MGNI) jumped 6.8%. Is now the time to buy Magnite? Access our full analysis report here, it’s free.
• Sit-Down Dining company Brinker International (NYSE: EAT) jumped 5.3%. Is now the time to buy Brinker International? Access our full analysis report here, it’s free.
• Sit-Down Dining company The ONE Group (NASDAQ: STKS) jumped 6.2%. Is now the time to buy The ONE Group? Access our full analysis report here, it’s free.

Zooming In On Magnite (MGNI)

Magnite’s shares are extremely volatile and have had 31 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 20 days ago when the stock gained 5.6% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. 

Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.

Magnite is up 15.4% since the beginning of the year, but at $18.58 per share, it is still trading 12.3% below its 52-week high of $21.17 from February 2025. Investors who bought $1,000 worth of Magnite’s shares 5 years ago would now be looking at an investment worth $2,539.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.