What Happened?

A number of stocks jumped in the afternoon session after investors rotated out of tech names to capitalize on attractive relative valuations. 

Market analysts noted that while technology remained a long-term theme, the immediate growth story was shifting toward sectors that lagged the AI-driven run-up. As high-growth tech names faced profit-taking, capital flowed into banks and asset managers viewed as offering more defensible earnings multiples in the current climate. The move reflected a classic pivot, in which traders lock in gains from volatile innovators and redeploy them into the "value" side of the market to maintain exposure while reducing risk. The positive mood was supported by a Goldman Sachs forecast that projected U.S. economic growth would accelerate to 2.6 percent in 2026. This outlook was based on expectations of tax cuts, easier financial conditions, and a reduced economic drag from tariffs.

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 Perella Weinberg (NASDAQ: PWP) jumped 3.2%. Is now the time to buy Perella Weinberg? Access our full analysis report here, it’s free.
• Diversified Financial Services company WEX (NYSE: WEX) jumped 3%. Is now the time to buy WEX? Access our full analysis report here, it’s free.
• Diversified Financial Services company Donnelley Financial Solutions (NYSE: DFIN) jumped 3.3%. Is now the time to buy Donnelley Financial Solutions? Access our full analysis report here, it’s free.

Zooming In On Donnelley Financial Solutions (DFIN)

Donnelley Financial Solutions’s shares are not very volatile and have only had 9 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 previous big move we wrote about was 2 days ago when the stock gained 5% on the news that investors shrugged off geopolitical tensions in Venezuela to push the S&P 500 and Dow Jones Industrial Average to new all-time highs. The rally was spearheaded by a resurgence in the "Magnificent Seven" and artificial intelligence sectors, with Amazon and Micron Technology posting significant gains. Market sentiment was fueled by a dual engine: "AI enthusiasm" approaching a fever pitch and expectations for a "hot" economy in 2026, supported by anticipated rate cuts and fiscal stimulus. This robust environment allowed both high-growth tech stocks and cyclical sectors to advance simultaneously.

Donnelley Financial Solutions is up 11.5% since the beginning of the year, but at $50.86 per share, it is still trading 26.6% below its 52-week high of $69.32 from February 2025. Investors who bought $1,000 worth of Donnelley Financial Solutions’s shares 5 years ago would now be looking at an investment worth $2,854.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.