What Happened?
A number of stocks fell in the afternoon session after U.S. equities traded lower as escalating geopolitical tensions between the U.S. and Iran pushed oil prices above $100 a barrel, rattling investor confidence.
Major indices saw significant declines, with the Dow Jones tumbling. The uncertainty surrounding the conflict drove Brent crude oil higher, effectively acting as a tax on the global economy by increasing costs for businesses and consumers. This sentiment was reflected in the University of Michigan's consumer survey, which fell to a three-month low as households braced for higher inflation, with year-ahead expectations jumping to 3.8%. Richmond Fed President Tom Barkin commented on the situation, noting that the 'fog of war' has deepened economic uncertainty and that historically, such oil price shocks are highly coincident with recessions.
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:
- Hardware & Infrastructure company Pure Storage (NYSE: PSTG) fell 6.1%. Is now the time to buy Pure Storage? Access our full analysis report here, it’s free.
- Specialized Technology company PAR Technology (NYSE: PAR) fell 5.4%. Is now the time to buy PAR Technology? Access our full analysis report here, it’s free.
- Traditional Media & Publishing company IMAX (NYSE: IMAX) fell 5%. Is now the time to buy IMAX? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company Getty Images (NYSE: GETY) fell 5.7%. Is now the time to buy Getty Images? Access our full analysis report here, it’s free.
- IT Services & Consulting company Kyndryl (NYSE: KD) fell 3.5%. Is now the time to buy Kyndryl? Access our full analysis report here, it’s free.
Zooming In On Pure Storage (PSTG)
Pure Storage’s shares are very volatile and have had 29 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 24 days ago when the stock dropped 4.9% on the news that the escalating conflict with Iran threatened to disrupt global oil supplies and fuel inflation.
U.S. stocks fell as crude oil prices rose for the second consecutive day, with the international benchmark, Brent crude, jumping as much as 13% to over $82 a barrel. The surge came as shipments through the Strait of Hormuz, a critical channel for about 20% of the world's oil, were choked off. Analysts were concerned that a prolonged conflict could lead to an inflationary shock. The injection of new uncertainty into the business environment is a hit to confidence, which could lead companies to invest and hire less, potentially derailing an already fragile economy.
Pure Storage is down 15.3% since the beginning of the year, and at $58.46 per share, it is trading 40.8% below its 52-week high of $98.70 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Pure Storage’s shares 5 years ago would now be looking at an investment worth $2,802.
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