What Happened?
A number of stocks jumped in the morning session after markets rebounded, driven by stabilizing oil prices and reports that President Trump was considering an end to the military conflict in Iran.
According to The Wall Street Journal, the president communicated to aides his willingness to de-escalate military hostilities, even if the strategically important Strait of Hormuz remained partially closed. This news helped soothe investor concerns about a prolonged conflict and its potential to spike energy costs, which can impact industrial operations and consumer spending. The positive shift in sentiment was reflected across major indexes, with the S&P 500 jumping over 1% as oil prices retreated from their recent highs.
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:
- Energy Products and Services company FTAI Infrastructure (NASDAQ: FIP) jumped 4.4%. Is now the time to buy FTAI Infrastructure? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Comfort Systems (NYSE: FIX) jumped 4.3%. Is now the time to buy Comfort Systems? Access our full analysis report here, it’s free.
- Ground Transportation company Saia (NASDAQ: SAIA) jumped 2.5%. Is now the time to buy Saia? Access our full analysis report here, it’s free.
- HVAC and Water Systems company AAON (NASDAQ: AAON) jumped 5.7%. Is now the time to buy AAON? Access our full analysis report here, it’s free.
- Waste Management company Quest Resource (NASDAQ: QRHC) jumped 6%. Is now the time to buy Quest Resource? Access our full analysis report here, it’s free.
Zooming In On Quest Resource (QRHC)
Quest Resource’s shares are extremely volatile and have had 64 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 8 days ago when the stock gained 13.1% on the news that the Trump administration postponed military action against Iran's following 'very good and productive' talks.
The Dow Jones Industrial Average responded with a significant jump as the news sent a wave of optimism through trading floors. This type of broad market rally is often led by cyclical sectors, such as industrials, which are sensitive to global economic stability. Companies like construction equipment firm Caterpillar and manufacturing conglomerate 3M, which have large international operations, were among the top performers. A decrease in geopolitical risk can lead to lower oil prices and a more stable outlook for global trade and large-scale projects, directly benefiting these firms.
Quest Resource is down 38.9% since the beginning of the year, and at $1.21 per share, it is trading 55% below its 52-week high of $2.69 from April 2025. Investors who bought $1,000 worth of Quest Resource’s shares 5 years ago would now be looking at only $310.26.
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