What Happened?
A number of stocks jumped in the morning session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Aerospace company Redwire (NYSE: RDW) jumped 13.9%. Is now the time to buy Redwire? Access our full analysis report here, it’s free.
- Leisure Facilities company Dave & Buster's (NASDAQ: PLAY) jumped 5.5%. Is now the time to buy Dave & Buster's? Access our full analysis report here, it’s free.
- Data Infrastructure company C3.ai (NYSE: AI) jumped 6.3%. Is now the time to buy C3.ai? Access our full analysis report here, it’s free.
- Data Analytics company Domo (NASDAQ: DOMO) jumped 6.2%. Is now the time to buy Domo? Access our full analysis report here, it’s free.
- E-commerce Software company Shopify (NASDAQ: SHOP) jumped 5%. Is now the time to buy Shopify? Access our full analysis report here, it’s free.
Zooming In On Redwire (RDW)
Redwire’s shares are extremely volatile and have had 89 moves greater than 5% over the last year. But moves this big are rare even for Redwire and indicate this news significantly impacted the market’s perception of the business.
Redwire is down 8.8% since the beginning of the year, and at $15.54 per share, it is trading 39.4% below its 52-week high of $25.66 from February 2025. Investors who bought $1,000 worth of Redwire’s shares at the IPO in January 2021 would now be looking at an investment worth $1,493.
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