What Happened?
A number of stocks fell in the afternoon session after investors reacted to a cocktail of negative macroeconomic news, including surging oil prices and rising Treasury yields.
The 10-year Treasury note yield jumped to 4.56%, a one-year high, fueling concerns about inflation and potential interest rate hikes. Compounding these worries, WTI crude oil prices rose to around $104 per barrel amid geopolitical tensions.
The market sentiment was also dampened by a general disappointment that the recent summit between President Trump and Chinese President Xi ended without any major agreements. This combination of factors led to a broad-based sell-off, pulling major indices like the S&P 500 and Nasdaq down from their recent record 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:
- Enterprise Networking company Applied Digital (NASDAQ: APLD) fell 7.9%. Is now the time to buy Applied Digital? Access our full analysis report here, it’s free.
- Satellite Telecommunication Services company Viasat (NASDAQ: VSAT) fell 5.3%. Is now the time to buy Viasat? Access our full analysis report here, it’s free.
- Industrial & Environmental Services company CECO Environmental (NASDAQ: CECO) fell 6.1%. Is now the time to buy CECO Environmental? Access our full analysis report here, it’s free.
- Office & Commercial Furniture company HNI (NYSE: HNI) fell 4.6%. Is now the time to buy HNI? Access our full analysis report here, it’s free.
Zooming In On Applied Digital (APLD)
Applied Digital’s shares are extremely volatile and have had 90 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 biggest move we wrote about over the last year was 12 months ago when the stock gained 51% on the news that it signed two long-term lease agreements for artificial intelligence data centers with Nvidia-backed AI hyperscaler CoreWeave.
APLD is expected to deliver 250 megawatts (MW) of power for CoreWeave's AI and high-performance computing (HPC) infrastructure at its North Dakota data center campus.
The bigger takeaway is financial: across the 15-year term, these contracts are expected to generate about $7 billion in revenue, providing significant long-term financial visibility for Applied Digital. The stock's reaction suggested investors viewed the deals as both a reliable new stream of recurring income and a clear signal that Applied Digital is well positioned in the rapidly expanding AI-data-center space.
Applied Digital is up 51.3% since the beginning of the year, and at $42.53 per share, it is trading close to its 52-week high of $46.71 from May 2026. Investors who bought $1,000 worth of Applied Digital’s shares 5 years ago would now be looking at an investment worth $4,888.
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