What Happened?
A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East intensified, pushing major indices into correction territory.
The Dow Jones Industrial Average and the Nasdaq both fell more than 10% from their recent highs, a drop known as a "correction." This downturn was fueled by the conflict with Iran, which roiled markets and dampened investor sentiment. The primary concern was the surge in oil prices, a direct consequence of the geopolitical instability. Higher energy costs stoked inflation fears, leading investors to anticipate a "higher-for-longer" interest rate environment. This broad market decline reflected a classic "risk-off" sentiment, where investors move away from equities toward safer assets amid global uncertainty.
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:
- Electronic Components & Manufacturing company Benchmark (NYSE: BHE) fell 3.8%. Is now the time to buy Benchmark? Access our full analysis report here, it’s free.
- Electronic Components & Manufacturing company Plexus (NASDAQ: PLXS) fell 3.7%. Is now the time to buy Plexus? Access our full analysis report here, it’s free.
- Electronic Components & Manufacturing company Amphenol (NYSE: APH) fell 4%. Is now the time to buy Amphenol? Access our full analysis report here, it’s free.
- Traditional Media & Publishing company EchoStar (NASDAQ: SATS) fell 4.3%. Is now the time to buy EchoStar? Access our full analysis report here, it’s free.
- Specialized Technology company Cognex (NASDAQ: CGNX) fell 3.7%. Is now the time to buy Cognex? Access our full analysis report here, it’s free.
Zooming In On EchoStar (SATS)
EchoStar’s shares are extremely volatile and have had 41 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 12 days ago when the stock dropped 2.9% on the news that a combination of hot inflation data and geopolitical turmoil rattled investor confidence.
The Producer Price Index (PPI) surged 0.7% in February, more than doubling economist estimates of 0.3%. This spike in wholesale costs, driven by rising tariffs and manufacturing inputs, signaled a shift toward structural, "sticky" inflation that may persist longer than anticipated. Anxiety intensified as Brent crude jumped 4% to $108 a barrel following reports that Israel struck a major Iranian gas facility. With Iran threatening retaliatory strikes on Gulf energy infrastructure, Wall Street increasingly priced in a scenario where rising energy costs flow directly to consumers. The selloff deepened as the Federal Reserve maintained interest rates at 3.5% to 3.75%, explicitly citing the "uncertain" economic impact of the escalating Middle East conflict.
While the Fed signaled one potential cut later in the year, Chair Jerome Powell admitted that progress on inflation had been slower than hoped, dousing dreams of a more aggressive pivot. This hawkish caution, reflected in the Dow's drop and 1% declines in the S&P 500 and Nasdaq, suggests that monetary easing may be delayed deep into the third quarter.
EchoStar is flat since the beginning of the year, and at $112.90 per share, it is trading 13.9% below its 52-week high of $131.09 from January 2026. Investors who bought $1,000 worth of EchoStar’s shares 5 years ago would now be looking at an investment worth $4,647.
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