What Happened?
A number of stocks jumped in the afternoon session after crude futures tumbled more than 17% following Trump's declaration of a two-week suspension of attacks on Iran.
The industrial sector, which is highly sensitive to energy costs and global trade fluidity, saw a significant lift. The prospect of a "workable basis" for negotiations reduced the fear of a prolonged industrial slowdown caused by energy shortages or disrupted supply chains. Industrial companies benefit from lower input costs for manufacturing and cheaper transportation for heavy equipment. The reopening of the Strait of Hormuz is particularly vital for the movement of raw materials and energy supplies that fuel industrial hubs.
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:
- Home Builders company TopBuild (NYSE: BLD) jumped 7.8%. Is now the time to buy TopBuild? Access our full analysis report here, it’s free.
- Electrical Systems company Powell (NASDAQ: POWL) jumped 7.9%. Is now the time to buy Powell? Access our full analysis report here, it’s free.
- Specialty Equipment Distributors company Herc (NYSE: HRI) jumped 7.8%. Is now the time to buy Herc? Access our full analysis report here, it’s free.
- HVAC and Water Systems company AAON (NASDAQ: AAON) jumped 8.6%. Is now the time to buy AAON? Access our full analysis report here, it’s free.
- Heavy Transportation Equipment company Wabash (NYSE: WNC) jumped 8.1%. Is now the time to buy Wabash? Access our full analysis report here, it’s free.
Zooming In On AAON (AAON)
AAON’s shares are very volatile and have had 24 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 8 days ago when the stock gained 5.7% on the news that markets rebounded, driven by stabilizing oil prices and reports that President Trump was considering an end to the military conflict in Iran.
According to The Wall Street Journal, the president communicated to aides his willingness to de-escalate military hostilities, even if the strategically important Strait of Hormuz remained partially closed. This news helped soothe investor concerns about a prolonged conflict and its potential to spike energy costs, which can impact industrial operations and consumer spending. The positive shift in sentiment was reflected across major indexes, with the S&P 500 jumping over 1% as oil prices retreated from their recent highs.
AAON is up 11.1% since the beginning of the year, but at $87.98 per share, it is still trading 17.7% below its 52-week high of $106.87 from May 2025. Investors who bought $1,000 worth of AAON’s shares 5 years ago would now be looking at an investment worth $1,921.
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