What Happened?
A number of stocks jumped in the afternoon session after markets continued to rally amid growing speculation of an impending interest rate cut by the Federal Reserve. Following a favorable Consumer Price Index (CPI) report, investors are increasingly betting on a rate reduction next month, a sentiment amplified by U.S. Treasury Secretary Scott Bessent's call for a significant cut. This has fueled a 'risk-on' environment across Wall Street. Lower interest rates are typically beneficial for growth-oriented sectors like healthcare, as they reduce the cost of borrowing for research and innovation and increase the present value of future earnings.
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:
- Therapeutics company Biogen (NASDAQ:BIIB) jumped 4.1%. Is now the time to buy Biogen? Access our full analysis report here, it’s free.
- Therapeutics company Moderna (NASDAQ:MRNA) jumped 4.8%. Is now the time to buy Moderna? Access our full analysis report here, it’s free.
- Dental Equipment & Technology company Align Technology (NASDAQ:ALGN) jumped 3%. Is now the time to buy Align Technology? Access our full analysis report here, it’s free.
- Medical Devices & Supplies - Imaging, Diagnostics company QuidelOrtho (NASDAQ:QDEL) jumped 6.1%. Is now the time to buy QuidelOrtho? Access our full analysis report here, it’s free.
- Patient Monitoring company Masimo (NASDAQ:MASI) jumped 3.6%. Is now the time to buy Masimo? Access our full analysis report here, it’s free.
Zooming In On QuidelOrtho (QDEL)
QuidelOrtho’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.
QuidelOrtho is down 41.2% since the beginning of the year, and at $26.50 per share, it is trading 44.3% below its 52-week high of $47.61 from January 2025. Investors who bought $1,000 worth of QuidelOrtho’s shares 5 years ago would now be looking at an investment worth $106.27.
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