What Happened?
A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies.
The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off. Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.
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:
- Specialized Technology company Crane NXT (NYSE: CXT) jumped 2.6%. Is now the time to buy Crane NXT? Access our full analysis report here, it’s free.
- IT Services & Consulting company DXC (NYSE: DXC) jumped 2.6%. Is now the time to buy DXC? Access our full analysis report here, it’s free.
- IT Services & Consulting company Gartner (NYSE: IT) jumped 4.6%. Is now the time to buy Gartner? Access our full analysis report here, it’s free.
- Professional Staffing & HR Solutions company Kforce (NYSE: KFRC) jumped 3.8%. Is now the time to buy Kforce? Access our full analysis report here, it’s free.
- Hardware & Infrastructure company NetApp (NASDAQ: NTAP) jumped 3.7%. Is now the time to buy NetApp? Access our full analysis report here, it’s free.
Zooming In On Gartner (IT)
Gartner’s shares are somewhat volatile and have had 11 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 biggest move we wrote about over the last year was 6 months ago when the stock dropped 27.3% on the news that the company lowered its full-year revenue forecast, which overshadowed a better-than-expected second-quarter earnings report. The company trimmed its full-year revenue projection to at least $6.45 billion, down from a previous forecast of around $6.54 billion. This revised outlook fell short of analyst expectations. While Gartner's second-quarter revenue of $1.69 billion and adjusted earnings per share of $3.53 both beat estimates, investors focused on the disappointing guidance for the remainder of the year. The firm also guided its full-year adjusted profit to $11.75 per share, which was below the market's consensus estimate.
Gartner is down 2.6% since the beginning of the year, and at $230.91 per share, it is trading 57.9% below its 52-week high of $548.38 from January 2025. Investors who bought $1,000 worth of Gartner’s shares 5 years ago would now be looking at an investment worth $1,431.
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