What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

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:

• Construction Machinery company Terex (NYSE: TEX) fell 3.6%. Is now the time to buy Terex? Access our full analysis report here, it’s free.
• Construction Machinery company Caterpillar (NYSE: CAT) fell 3.6%. Is now the time to buy Caterpillar? Access our full analysis report here, it’s free.
• Agricultural Machinery company Titan International (NYSE: TWI) fell 2.9%. Is now the time to buy Titan International? Access our full analysis report here, it’s free.
• Ground Transportation company Ryder (NYSE: R) fell 3.7%. Is now the time to buy Ryder? Access our full analysis report here, it’s free.
• Electronic Components company Littelfuse (NASDAQ: LFUS) fell 3.9%. Is now the time to buy Littelfuse? Access our full analysis report here, it’s free.

Zooming In On Littelfuse (LFUS)

Littelfuse’s shares are somewhat volatile and have had 11 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 5.2% on the news that the stock rallied amid broad strength in the semiconductor sector, driven by a positive industry growth forecast. 

The rally in chip stocks was partly fueled by an optimistic forecast from a UBS analyst, who projected the global semiconductor market would approach $700 billion in 2025 and surpass $1 trillion in 2026, driven by strong AI-related demand. This positive sentiment was reinforced by strong results from industry heavyweight Taiwan Semiconductor (TSMC), which beat revenue estimates, further validating the AI infrastructure trend.

Littelfuse is up 10.5% since the beginning of the year, and at $290.14 per share, it is trading close to its 52-week high of $301.50 from January 2026. Investors who bought $1,000 worth of Littelfuse’s shares 5 years ago would now be looking at an investment worth $1,064.

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