What Happened?
A number of stocks jumped in the afternoon session after the Trump administration announced a new peace deal that would lead to the reopening of the Strait of Hormuz.
Energy is embedded throughout construction materials manufacturing — cement kilns, glass furnaces, and steel mills are among the most energy-intensive industrial processes. When oil falls more than 5%, production energy costs decrease materially. Ocean freight costs for imported materials also ease as the Hormuz reopening removes rerouting surcharges that had applied since February.
On the demand side, the 10-year Treasury yield fell to its lowest level since mid-May, signalling potential mortgage rate relief. Construction materials sales follow new housing starts with a short lag: a housing market that begins to thaw as affordability improves generates orders months before the activity shows up in broader economic data.
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 Construction Materials company Owens Corning (NYSE: OC) jumped 3.1%. Is now the time to buy Owens Corning? Access our full analysis report here, it’s free.
- Home Construction Materials company JELD-WEN (NYSE: JELD) jumped 5.9%. Is now the time to buy JELD-WEN? Access our full analysis report here, it’s free.
Zooming In On JELD-WEN (JELD)
JELD-WEN’s shares are extremely volatile and have had 74 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 3 days ago when the stock gained 0.8% on the news that the prospect of a US-Iran peace deal pushed the 10-year Treasury yield down and cut the probability of a Federal Reserve rate hike in October, the most direct path to mortgage relief the sector had seen in months.
The Iran war, which began February 28, pushed oil near $100 a barrel, reignited inflation, and forced the 30-year mortgage rate back up to 6.53% after a brief dip below 6% in late February. The damage was measurable: new single-family home sales fell 11.3% year-on-year through April, and both D.R. Horton and Lennar reported spring seasons below expectations.
A peace deal that reopens the Strait of Hormuz is the one macro event capable of easing the inflation that has kept rates high.
JELD-WEN is down 24.4% since the beginning of the year, and at $1.88 per share, it is trading 72.3% below its 52-week high of $6.76 from September 2025. Investors who bought $1,000 worth of JELD-WEN’s shares 5 years ago would now be looking at only $69.91.
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