What happened?
A number of stocks jumped in the afternoon session after The Federal Reserve opened its two-day meeting with the 10-year Treasury yield at 4.995%, and futures priced roughly a 90% chance that rates stay in the current 3.75%–4% range, as reported by CNBC. September durable-goods orders rose 1.8%, a touch above the 1.7% gain economists polled by Dow Jones had expected. The decision comes later in the week, and Chair Kevin Warsh’s press conference is where investors will listen for any sign of another hike before year-end. In addition to policy anticipations, resilient corporate updates reinforced market optimism, highlighted by United Parcel Service lifting its full-year guidance following better-than-expected profit results. Together, anticipation surrounding interest rate stability and robust corporate performance fueled widespread optimism across Wall Street.
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:
- Professional tools and equipment company Lincoln Electric (NASDAQ: LECO) jumped 8.8%. Is now the time to buy Lincoln Electric? Access our full analysis report here, it’s free.
- Aerospace company Rocket Lab (NASDAQ: RKLB) jumped 8.4%. Is now the time to buy Rocket Lab? Access our full analysis report here, it’s free.
- Renewable energy company Fluence Energy (NASDAQ: FLNC) jumped 8.3%. Is now the time to buy Fluence Energy? Access our full analysis report here, it’s free.
- Renewable energy company ChargePoint (NYSE: CHPT) jumped 8.8%. Is now the time to buy ChargePoint? Access our full analysis report here, it’s free.
- Renewable energy company American Superconductor (NASDAQ: AMSC) jumped 9.5%. Is now the time to buy American Superconductor? Access our full analysis report here, it’s free.
Zooming in on American Superconductor (AMSC)
American Superconductor’s shares are extremely volatile and have had 62 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 21 days ago when the stock gained 2.4% on the news that surging capital spending for artificial intelligence infrastructure and defense bolstered demand across power systems, data center construction, and electrical grid buildouts, with gains amplified as the S&P 500 and Nasdaq Composite reached fresh all-time highs. Capital allocations directed toward artificial intelligence facilities have intensified demand across the industrials sector, as massive computing clusters require extensive power upgrades and physical installations as reported by AP news. Companies providing electrical grid equipment, backup generation, and specialized data center construction are seeing accelerated project orders. Power supply constraints have become a focal challenge for tech infrastructure development, turning industrial suppliers into critical enablers of technology adoption. Meanwhile, sustained government and corporate budgets for defense modernization provide an additional pillar of predictable revenue. Analysts note that these dual infrastructure drivers have helped insulate power systems and industrial equipment providers from broader macroeconomic cyclicality, reinforcing market momentum as investors anticipate continued multi-year order backlogs across the sector.
American Superconductor is down 12.5% since the beginning of the year, and at $27.63 per share, it is trading 56.2% below its 52-week high of $63.01 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of American Superconductor’s shares 5 years ago would now be looking at an investment worth $1,611.
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