What Happened?

A number of stocks fell in the afternoon session after markets reacted to President Trump's threat to "completely obliterate" Iran's energy infrastructure and the critical Kharg Island hub. 

The ultimatum raised the specter of a total energy supply shock. Notably, Kharg Island handles 90% of Iran's crude exports. The escalating rhetoric, including potential ground force deployment to seize fuel hubs, drove a flight to safety.

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:

• Engineered Components and Systems company Graham Corporation (NYSE: GHM) fell 3.9%. Is now the time to buy Graham Corporation? Access our full analysis report here, it’s free.
• Inspection Instruments company Keysight (NYSE: KEYS) fell 4.3%. Is now the time to buy Keysight? Access our full analysis report here, it’s free.
• Gas and Liquid Handling company Flowserve (NYSE: FLS) fell 4.3%. Is now the time to buy Flowserve? Access our full analysis report here, it’s free.
• Engineering and Design Services company MasTec (NYSE: MTZ) fell 4.2%. Is now the time to buy MasTec? Access our full analysis report here, it’s free.
• General Industrial Machinery company GE Aerospace (NYSE: GE) fell 4.2%. Is now the time to buy GE Aerospace? Access our full analysis report here, it’s free.

Zooming In On Keysight (KEYS)

Keysight’s shares are not very volatile and have only had 9 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.

The previous big move we wrote about was 25 days ago when the stock dropped 5.4% on the news that geopolitical tensions in the Middle East escalated, sent oil prices soaring and reignited inflation concerns. 

The Dow Jones Industrial Average fell over 1,000 points as the conflict involving the U.S. and Iran disrupted global energy markets, particularly through crucial shipping routes like the Strait of Hormuz. A barrel of Brent crude, the international benchmark, rose toward $85, stoking fears of a new wave of inflation. This spike in energy costs puts the Federal Reserve in a difficult position, as it may complicate future monetary policy decisions and delay potential interest rate cuts. The broad-based sell-off hit multiple sectors, with airline and retail stocks falling sharply on concerns of higher fuel costs and reduced consumer spending power.

Keysight is up 30.3% since the beginning of the year, but at $269.29 per share, it is still trading 14% below its 52-week high of $313.27 from March 2026. Investors who bought $1,000 worth of Keysight’s shares 5 years ago would now be looking at an investment worth $1,903.

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