What Happened?
Shares of networking technology giant Cisco (NASDAQ: CSCO) fell 2.8% in the afternoon session after U.S. equities traded lower as escalating geopolitical tensions between the U.S. and Iran pushed oil prices above $100 a barrel, rattling investor confidence.
Major indices saw significant declines, with the Dow Jones tumbling. The uncertainty surrounding the conflict drove Brent crude oil higher, effectively acting as a tax on the global economy by increasing costs for businesses and consumers. This sentiment was reflected in the University of Michigan's consumer survey, which fell to a three-month low as households braced for higher inflation, with year-ahead expectations jumping to 3.8%. Richmond Fed President Tom Barkin commented on the situation, noting that the 'fog of war' has deepened economic uncertainty and that historically, such oil price shocks are highly coincident with recessions.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Cisco? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Cisco’s shares are not very volatile and have only had 3 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 12 months ago when the stock gained 7.5% on the news that markets rallied sharply on news that President Trump announced a 90-day tariff pause.
Reciprocal tariffs were also dropped to 10% for most countries, sparking renewed optimism amid ongoing trade talks. The major stock indices rose as investors, growing impatient of seemingly irrational tariff actions, welcomed the pause as a sign of a more measured path forward. However, Trump was quick to note that China was not part of the pause. Instead, he prepared to raise tariffs on Chinese goods to 125% after China announced retaliatory tariffs on US imports. This tough stance on China stood in sharp contrast to the softer tone toward others. In a week marked by growing uncertainty, this news eased some of the pressure. The questions remain whether we are out of the woods and can sustain the rally or not.
Cisco is up 5% since the beginning of the year, and at $79.82 per share, it is trading close to its 52-week high of $86.78 from February 2026. Investors who bought $1,000 worth of Cisco’s shares 5 years ago would now be looking at an investment worth $1,520.
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