What Happened?

A number of stocks fell in the afternoon session after the major indices continued to retreat amid profit-taking and renewed concerns about tariffs. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.

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:

• Renewable Energy company ChargePoint (NYSE: CHPT) fell 4.8%. Is now the time to buy ChargePoint? Access our full analysis report here, it’s free.
• Property & Casualty Insurance company Root (NASDAQ: ROOT) fell 4.2%. Is now the time to buy Root? Access our full analysis report here, it’s free.
• Design Software company Adobe (NASDAQ: ADBE) fell 3.7%. Is now the time to buy Adobe? Access our full analysis report here, it’s free.
• Identity Management company Okta (NASDAQ: OKTA) fell 4.1%. Is now the time to buy Okta? Access our full analysis report here, it’s free.
• Compliance Software company Workiva (NYSE: WK) fell 6.8%. Is now the time to buy Workiva? Access our full analysis report here, it’s free.

Zooming In On Workiva (WK)

Workiva’s shares are somewhat volatile and have had 10 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 11 days ago when the stock gained 4% on the news that 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.

Workiva is down 29% since the beginning of the year, and at $77.29 per share, it is trading 32.7% below its 52-week high of $114.78 from December 2024. Investors who bought $1,000 worth of Workiva’s shares 5 years ago would now be looking at an investment worth $1,261.

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