What Happened?
A number of stocks jumped in the afternoon session after reports revealed easing geopolitical tensions between the U.S. and Iran.
The broader market rallied after President Trump announced that talks were underway to end hostilities and that he had postponed strikes against Iranian energy sites. The news sent major indices like the S&P 500 and Dow sharply higher, creating a 'risk-on' environment favorable to financial firms. For the asset management sector, which is closely tied to the performance of financial markets, the rally is a welcome tailwind. Rising equity values increase the value of assets under management (AUM), a key performance metric for these companies. The de-escalation also caused energy prices to tumble, with Brent crude oil falling more than 7%.
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:
- Investment Banking & Brokerage company Lazard (NYSE: LAZ) jumped 2.8%. Is now the time to buy Lazard? Access our full analysis report here, it’s free.
- Investment Banking & Brokerage company BGC (NASDAQ: BGC) jumped 3%. Is now the time to buy BGC? Access our full analysis report here, it’s free.
- Custody Bank company Voya Financial (NYSE: VOYA) jumped 2.7%. Is now the time to buy Voya Financial? Access our full analysis report here, it’s free.
- Credit Card company Capital One (NYSE: COF) jumped 2.9%. Is now the time to buy Capital One? Access our full analysis report here, it’s free.
- Custody Bank company Hamilton Lane (NASDAQ: HLNE) jumped 3%. Is now the time to buy Hamilton Lane? Access our full analysis report here, it’s free.
Zooming In On BGC (BGC)
BGC’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.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 3.6% on the news that investors grew more optimistic about a potential Federal Reserve interest rate cut in December. The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.
BGC is up 8.3% since the beginning of the year, but at $9.69 per share, it is still trading 10.7% below its 52-week high of $10.85 from July 2025. Investors who bought $1,000 worth of BGC’s shares 5 years ago would now be looking at an investment worth $2,252.
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