What Happened?
A number of stocks fell in the afternoon session after September consumer price inflation accelerated to 3.7% and core inflation topped estimates, reigniting concerns over Federal Reserve interest rate hikes.
The hotter-than-expected data showed headline consumer prices rising 3.7% annually, while core inflation, which excludes volatile food and energy prices, reached 2.6%. In the wake of the report, traders raised the implied probability of a central bank rate increase at the next meeting to nearly 44%. The sudden shift in policy expectations pushed Treasury yields higher and triggered volatility across bond markets.
Banking leaders pointed out that persistent interest rate uncertainty and Treasury market swings are dampening client trading activity and stalling corporate dealmaking as reported by TheStreet. When borrowing costs remain high and unpredictable, corporations typically hold off on mergers, acquisitions, and debt offerings, creating broad sector-wide pressure on investment banking revenue.
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 Evercore (NYSE: EVR) fell 3.1%. Is now the time to buy Evercore? Access our full analysis report here, it’s free.
- Personal Loan company FirstCash (NASDAQ: FCFS) fell 2.4%. Is now the time to buy FirstCash? Access our full analysis report here, it’s free.
- Asset Management company Blackstone (NYSE: BX) fell 2.6%. Is now the time to buy Blackstone? Access our full analysis report here, it’s free.
- Personal Loan company Atlanticus Holdings (NASDAQ: ATLC) fell 3.2%. Is now the time to buy Atlanticus Holdings? Access our full analysis report here, it’s free.
Zooming In On Atlanticus Holdings (ATLC)
Atlanticus Holdings’s shares are extremely volatile and have had 32 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 29 days ago when the stock dropped 3.1% on the news that Financial Sector Retreats as Treasury Yields Surge Ahead of Fed Policy Meeting. Treasury yields climbed to multi-year highs and rising oil prices fueled inflation concerns ahead of the Federal Reserve’s interest-rate decision. The 10-year U.S. Treasury yield pushed above 5% — its highest level since 2007 — as a global bond selloff intensified ahead of the Fed’s September policy meeting, according to Bloomberg. Rising benchmark yields and elevated energy costs renewed pressure on interest-rate-sensitive assets, heightening funding and credit concerns for leveraged financial institutions and prompting a rotation away from recent market leaders. Broader equity benchmarks also weakened as higher long-end yields weighed on valuations and dampened investor sentiment across financial markets.
Atlanticus Holdings is up 37.2% since the beginning of the year, but at $91.05 per share, it is still trading 18.6% below its 52-week high of $111.79 from August 2026. Investors who bought $1,000 worth of Atlanticus Holdings’s shares 5 years ago would now be looking at an investment worth $1,495.
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