What Happened?
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
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:
- Real Estate Services company Marcus & Millichap (NYSE: MMI) jumped 3.1%. Is now the time to buy Marcus & Millichap? Access our full analysis report here, it’s free for active Edge members.
- Toys and Electronics company Hasbro (NASDAQ: HAS) jumped 3%. Is now the time to buy Hasbro? Access our full analysis report here, it’s free for active Edge members.
- Travel and Vacation Providers company United Airlines (NASDAQ: UAL) jumped 3.1%. Is now the time to buy United Airlines? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Marcus & Millichap (MMI)
Marcus & Millichap’s shares are not very volatile and have only had 6 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.
Marcus & Millichap is down 21.1% since the beginning of the year, and at $29.52 per share, it is trading 30.1% below its 52-week high of $42.22 from November 2024. Investors who bought $1,000 worth of Marcus & Millichap’s shares 5 years ago would now be looking at an investment worth $833.76.
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