What Happened?

A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

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:

• Regional Banks company Banner Bank (NASDAQ: BANR) jumped 5.8%. Is now the time to buy Banner Bank? Access our full analysis report here, it’s free.
• Data Analytics company Domo (NASDAQ: DOMO) jumped 5.5%. Is now the time to buy Domo? Access our full analysis report here, it’s free.
• Commercial Building Products company Insteel (NYSE: IIIN) jumped 4.5%. Is now the time to buy Insteel? Access our full analysis report here, it’s free.
• Ground Transportation company Universal Logistics (NASDAQ: ULH) jumped 13.6%. Is now the time to buy Universal Logistics? Access our full analysis report here, it’s free.
• Professional Staffing & HR Solutions company First Advantage (NASDAQ: FA) jumped 5.1%. Is now the time to buy First Advantage? Access our full analysis report here, it’s free.

Zooming In On Universal Logistics (ULH)

Universal Logistics’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for Universal Logistics and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 8 days ago when the stock dropped 5.4% on the news that an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.

Universal Logistics is down 38.6% since the beginning of the year, and at $26.85 per share, it is trading 48.6% below its 52-week high of $52.28 from November 2024. Investors who bought $1,000 worth of Universal Logistics’s shares 5 years ago would now be looking at an investment worth $1,378.

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