What Happened?

A number of stocks fell in the afternoon session after President Donald Trump threatened to significantly increase tariffs on Chinese imports, reigniting trade war fears. 

The threat immediately broke a monthslong calm on Wall Street, sending the S&P 500 down 1.2% in its worst session since August. For the industrial sector, which is heavily reliant on global supply chains, the prospect of new tariffs is particularly concerning. Aggressive U.S. trade policies lead to unpredictable input costs and disrupt manufacturing operations. This volatility weighs heavily on companies that depend on a stable international trade for both sourcing materials and selling finished goods, leading to a broad sell-off among industrial giants.

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:

• Terrestrial Telecommunication Services company Lumen (NYSE: LUMN) fell 2.8%. Is now the time to buy Lumen? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components & Manufacturing company TTM Technologies (NASDAQ: TTMI) fell 2.7%. Is now the time to buy TTM Technologies? Access our full analysis report here, it’s free for active Edge members.
• Digital Media & Content Platforms company Getty Images (NYSE: GETY) fell 4.3%. Is now the time to buy Getty Images? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components & Manufacturing company Knowles (NYSE: KN) fell 2.9%. Is now the time to buy Knowles? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components & Manufacturing company Rogers (NYSE: ROG) fell 3%. Is now the time to buy Rogers? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Getty Images (GETY)

Getty Images’s shares are extremely volatile and have had 49 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 about 23 hours ago when the stock dropped 4.8% on the news that the U.S. government shutdown halted the release of crucial economic data, creating uncertainty for investors and policymakers. In its second week, the shutdown had stopped the flow of key federal figures on job creation and inflation. This came at a critical time, as the job market showed signs of slowing, and there were concerns that further declines could drag down the broader economy. 

In addition, Jamie Dimon raised concerns about a market correction. He added, "I would give it a higher probability than I think is probably priced in the market and by others, so if the market is pricing in 10%, I would ... say it's more like 30%." Dimon's remarks are closely watched given his influence as head of one of the nation's largest banks.

Getty Images is flat since the beginning of the year, and at $2.13 per share, it is trading 51.7% below its 52-week high of $4.41 from November 2024. Investors who bought $1,000 worth of Getty Images’s shares 5 years ago would now be looking at an investment worth $213.21.

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