What Happened?
A number of stocks fell in the afternoon session after surging long-term Treasury yields reached multi-decade highs and energy market tightness prompted global emergency reserve actions. CNBC reported that longer-dated Treasury yields hit their highest levels in more than two decades on Monday. The 10-year yield touched 5.349%, its highest since April 2002, and the 30-year yield reached 5.703%, a level last seen in May 2002. Jay Hatfield, chief executive of Infrastructure Capital Advisors, called it a momentum selloff. The jump came as a services-sector price gauge stayed elevated, keeping inflation pressure in focus ahead of the Federal Reserve’s September meeting minutes. Morningstar, citing Dow Jones, reported that the Group of Seven plans to release 100 million barrels from diesel and crude stockpiles over the next four months to combat record-high fuel prices. The group also urged countries with significant refining capacity to raise output and to stagger refinery maintenance so plants are not shut at the same time. The release follows criticism that Europe had not tapped reserves fast enough to ease fuel costs during the Iran war.
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:
- Mixed or Offshore Upstream E&P company Peabody Energy (NYSE: BTU) fell 3.7%. Is now the time to buy Peabody Energy? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Solaris Energy Infrastructure (NYSE: SEI) fell 4.9%. Is now the time to buy Solaris Energy Infrastructure? Access our full analysis report here, it’s free.
- Oilfield Services company ProFrac (NASDAQ: ACDC) fell 3.2%. Is now the time to buy ProFrac? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Centrus Energy (NYSE: LEU) fell 5.3%. Is now the time to buy Centrus Energy? Access our full analysis report here, it’s free.
- Oilfield Services company SLB (NYSE: SLB) fell 3.9%. Is now the time to buy SLB? Access our full analysis report here, it’s free.
Zooming In On Centrus Energy (LEU)
Centrus Energy’s shares are extremely volatile and have had 83 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 20 days ago when the stock gained 7.1% on the news that the company and Antares Nuclear announced a definitive multi-year supply agreement for High-Assay Low-Enriched Uranium. Under the agreement, deliveries of High-Assay Low-Enriched Uranium are scheduled to commence prior to 2030. The contract also includes customer prepayments to help Centrus Energy build out its domestic enrichment facilities. Long-term supply agreements can provide commercial demand over multiple years, while customer prepayments offer capital to fund facility construction and expansion.
Centrus Energy is down 46.7% since the beginning of the year, and at $145.25 per share, it is trading 66.7% below its 52-week high of $436 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Centrus Energy’s shares 5 years ago would now be looking at an investment worth $3,655.
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