What Happened?

A number of stocks fell in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. 

While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%. This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. 

Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.

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:

• Renewable Energy company EnerSys (NYSE: ENS) fell 3.8%. Is now the time to buy EnerSys? Access our full analysis report here, it’s free for active Edge members.
• General Industrial Machinery company GE Aerospace (NYSE: GE) fell 2.5%. Is now the time to buy GE Aerospace? Access our full analysis report here, it’s free for active Edge members.
• Heavy Transportation Equipment company REV Group (NYSE: REVG) fell 3.4%. Is now the time to buy REV Group? Access our full analysis report here, it’s free for active Edge members.
• Ground Transportation company Avis Budget Group (NASDAQ: CAR) fell 3.4%. Is now the time to buy Avis Budget Group? Access our full analysis report here, it’s free for active Edge members.
• Ground Transportation company Universal Logistics (NASDAQ: ULH) fell 2.8%. Is now the time to buy Universal Logistics? Access our full analysis report here, it’s free for active Edge members.

Zooming In On EnerSys (ENS)

EnerSys’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock gained 6.3% on the news that a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.

EnerSys is up 43.9% since the beginning of the year, and at $132.50 per share, it is trading close to its 52-week high of $138.83 from November 2025. Investors who bought $1,000 worth of EnerSys’s shares 5 years ago would now be looking at an investment worth $1,656.

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