What Happened?
A number of stocks fell in the afternoon session after President Trump threatened to increase import taxes on Chinese goods, reigniting trade war fears.
The threat was in response to China's move to restrict its exports of rare earth minerals, which are critical to high-tech manufacturing in the U.S. The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-heavy Nasdaq Composite fell 2.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies.
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:
- Payments Software company Marqeta (NASDAQ: MQ) fell 2.7%. Is now the time to buy Marqeta? Access our full analysis report here, it’s free for active Edge members.
- Developer Operations company GitLab (NASDAQ: GTLB) fell 4.9%. Is now the time to buy GitLab? Access our full analysis report here, it’s free for active Edge members.
- Sales Software company Freshworks (NASDAQ: FRSH) fell 2.5%. Is now the time to buy Freshworks? Access our full analysis report here, it’s free for active Edge members.
- Design Software company Procore Technologies (NYSE: PCOR) fell 5.4%. Is now the time to buy Procore Technologies? Access our full analysis report here, it’s free for active Edge members.
- Vertical Software company Alarm.com (NASDAQ: ALRM) fell 4%. Is now the time to buy Alarm.com? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Procore Technologies (PCOR)
Procore Technologies’s shares are somewhat volatile and have had 13 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 2 days ago when the stock gained 3.9% on the news that confidence in the artificial intelligence market was renewed, pushing both the S&P 500 and Nasdaq to new all-time intraday highs.
The rebound was led by chipmaker Nvidia, whose shares rose nearly 2% after its CEO confirmed that demand for computing has "gone up substantially" in recent months. These comments helped reassure the market that the AI boom is supported by genuine demand, calming fears that were sparked a day earlier by a report questioning the profitability of Oracle's cloud business. The rally was strong enough to put the information technology sector on pace for a fresh closing high. This upward momentum occurred despite potential headwinds from an ongoing U.S. government shutdown, which entered its second week.
Procore Technologies is down 7.2% since the beginning of the year, and at $69.80 per share, it is trading 21% below its 52-week high of $88.33 from February 2025. Investors who bought $1,000 worth of Procore Technologies’s shares at the IPO in May 2021 would now be looking at an investment worth $793.13.
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