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:
- Advertising & Marketing Services company Interpublic Group (NYSE: IPG) jumped 3.2%. Is now the time to buy Interpublic Group? Access our full analysis report here, it’s free.
- Asset Management & Auction Services company OPENLANE (NYSE: KAR) jumped 3.1%. Is now the time to buy OPENLANE? Access our full analysis report here, it’s free.
- Advertising & Marketing Services company Omnicom Group (NYSE: OMC) jumped 3.1%. Is now the time to buy Omnicom Group? Access our full analysis report here, it’s free.
- Custody Bank company WisdomTree (NYSE: WT) jumped 3.1%. Is now the time to buy WisdomTree? Access our full analysis report here, it’s free.
- Custody Bank company Franklin Resources (NYSE: BEN) jumped 3.2%. Is now the time to buy Franklin Resources? Access our full analysis report here, it’s free.
Zooming In On Franklin Resources (BEN)
Franklin Resources’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Franklin Resources is up 25.5% since the beginning of the year, and at $25.28 per share, it is trading close to its 52-week high of $26.03 from August 2025. Investors who bought $1,000 worth of Franklin Resources’s shares 5 years ago would now be looking at an investment worth $1,172.
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