What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

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:

• Specialty Equipment Distributors company Herc (NYSE: HRI) fell 4.7%. Is now the time to buy Herc? Access our full analysis report here, it’s free.
• Professional Tools and Equipment company Middleby (NASDAQ: MIDD) fell 2.7%. Is now the time to buy Middleby? Access our full analysis report here, it’s free.
• Building Materials company Resideo (NYSE: REZI) fell 2.8%. Is now the time to buy Resideo? Access our full analysis report here, it’s free.
• Home Construction Materials company Fortune Brands (NYSE: FBIN) fell 3.6%. Is now the time to buy Fortune Brands? Access our full analysis report here, it’s free.
• Maintenance and Repair Distributors company MSC Industrial (NYSE: MSM) fell 2.6%. Is now the time to buy MSC Industrial? Access our full analysis report here, it’s free.

Zooming In On Herc (HRI)

Herc’s shares are extremely volatile and have had 40 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 1 day ago when the stock gained 3.5% on the news that the US president announced a framework for a future deal with Greenland.

Wall Street saw a broad-based rally, with the S&P 500 gaining 1.2% as investor concerns over global trade tensions eased. The positive sentiment followed an announcement that reversed course on plans to impose tariffs linked to Greenland, which had caused steep market losses earlier in the week. This recovery reflected renewed optimism in the market, as the threat of a widening trade conflict appeared to subside, encouraging investors to move back into equities.

Herc is up 4.7% since the beginning of the year, but at $159.53 per share, it is still trading 24.4% below its 52-week high of $211.06 from January 2025. Investors who bought $1,000 worth of Herc’s shares 5 years ago would now be looking at an investment worth $2,286.

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