What Happened?
Shares of global car rental company Hertz (NASDAQ: HTZ) jumped 10.2% in the afternoon session after data from Cox Automotive showed a significant jump in used car prices, reaching their highest levels since mid-2023.
The Manheim Used Vehicle Value Index reported a 6.2% year-over-year increase for March 2026, a massive win for Hertz. Since a major expense for the company is the depreciation of its fleet, higher resale values mean Hertz loses much less money when it eventually sells its older vehicles.
Adding to the momentum, major airport delays pushed more travelers toward car rentals. Staffing shortages at the Transportation Security Administration (TSA) caused massive security lines across the country, which typically encourages passengers to skip flights in favor of driving. This surge in demand raised optimism about the rental giant's recovery and ability to capture higher booking rates.
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What Is The Market Telling Us
Hertz’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. But moves this big are rare even for Hertz and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 6.7% on the news that the Trump administration postponed military action against Iran's following 'very good and productive' talks.
The Dow Jones Industrial Average responded with a significant jump as the news sent a wave of optimism through trading floors. This type of broad market rally is often led by cyclical sectors, such as industrials, which are sensitive to global economic stability.
Companies like construction equipment firm Caterpillar and manufacturing conglomerate 3M, which have large international operations, were among the top performers.
A decrease in geopolitical risk can lead to lower oil prices and a more stable outlook for global trade and large-scale projects, directly benefiting these firms.
Hertz is up 10% since the beginning of the year, but at $5.74 per share, it is still trading 33.7% below its 52-week high of $8.65 from April 2025. Investors who bought $1,000 worth of Hertz’s shares at the IPO in June 2021 would now be looking at an investment worth $212.67.
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