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Universal Display, Impinj, and Lattice Semiconductor Shares Are Soaring, What You Need To Know

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What Happened?

A number of stocks jumped in the afternoon session after the semiconductor sector continued to rally as a favorable July inflation report boosted investor confidence for a potential Federal Reserve interest rate cut in September. Lower-than-expected inflation data for July increased market expectations for a Federal Reserve interest rate cut next month, with futures markets pricing in a 96.2% probability. A potential rate cut lowers borrowing costs, which is particularly beneficial for growth-oriented sectors like technology and semiconductors as it can fuel investment and expansion.

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 Impinj (PI)

Impinj’s shares are very volatile and have had 27 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.

Impinj is up 15.8% since the beginning of the year, but at $169.93 per share, it is still trading 28.8% below its 52-week high of $238.58 from October 2024. Investors who bought $1,000 worth of Impinj’s shares 5 years ago would now be looking at an investment worth $7,010.

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