What Happened?
Shares of electrical energy control systems manufacturer Powell (NYSE: POWL) jumped 4% in the afternoon session after a key inflation report showed that price pressures eased more than anticipated.
The U.S. Bureau of Labor Statistics released its Consumer Price Index (CPI) report for November, which revealed an inflation rate of only 2.7%. This figure was notably lower than the 3.1% that economists had predicted. The cooler-than-expected data pleased investors, as it increased the likelihood of a future interest rate cut. Such cuts are generally viewed as positive for the stock market. In response to the news, equity markets opened higher, with broad gains across most sectors.
After the initial pop the shares cooled down to $329.49, up 3.8% from previous close.
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What Is The Market Telling Us
Powell’s shares are extremely volatile and have had 38 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 28 days ago when the stock gained 5.8% on the news that strong results from chipmaker Nvidia eased lingering concerns about a potential bubble, especially in the tech sector.
The tech giant delivered another blockbuster earnings report, with sales, profits, and guidance exceeding Wall Street expectations. CEO Jensen Huang let the data do the talking as he acknowledged the growing sentiment about an AI bubble, while affirming that sales for Nvidia's current-generation GPU, called Blackwell (mostly used for AI applications), are "off the charts."
A stronger-than-expected September jobs report from the Bureau of Labor Statistics reinforced this bullish sentiment. Nonfarm payrolls rose by 119,000, easily surpassing the consensus estimates of 50,000. While the unemployment rate ticked up to 4.4% and wage growth slowed slightly, the data suggest the U.S. economy remains on a firm footing. While this resilience made some investors unsure of the Fed's December rate decision, the market welcomed the news, rallying on the strength of a solid economy and a booming tech sector.
Powell is up 44% since the beginning of the year, but at $329.49 per share, it is still trading 19.3% below its 52-week high of $408.37 from October 2025. Investors who bought $1,000 worth of Powell’s shares 5 years ago would now be looking at an investment worth $11,299.
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