What Happened?
A number of stocks jumped in the afternoon session after the technology sector rallied, pushing the Nasdaq near all-time highs, as investors cheered a potential de-escalation of geopolitical tensions in the Middle East amid a flurry of positive news in the artificial intelligence space.
The broader market sentiment was lifted by expectations of a resolution to the U.S.-Iran conflict, which helped the S&P 500 cross the 7,000 mark. However, the tech sector saw particularly strong performance, driven by excitement around AI. Underscoring this trend, reports emerged that Uber is investing over $10 billion to acquire a fleet of autonomous vehicles. This move signals a major strategic shift for the company and highlights the massive capital flowing into AI-driven technologies, boosting confidence across the industry and affecting related players like Alphabet's Waymo and Tesla.
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:
- Video Gaming company Take-Two (NASDAQ: TTWO) jumped 4.7%. Is now the time to buy Take-Two? Access our full analysis report here, it’s free.
- Online Marketplace company Sea (NYSE: SE) jumped 5.6%. Is now the time to buy Sea? Access our full analysis report here, it’s free.
- Financial Technology company Remitly (NASDAQ: RELY) jumped 5.6%. Is now the time to buy Remitly? Access our full analysis report here, it’s free.
Zooming In On Sea (SE)
Sea’s shares are somewhat volatile and have had 14 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 15 days ago when the stock gained 3.5% on the news that President Donald Trump signaled a willingness to end the multi-week military conflict with Iran.
This news provided a much-needed boost to markets. The geopolitical tensions had pushed the Nasdaq-100 index into correction territory, defined as a drop of more than 10% from its peak. Concerns over spiking oil prices and broader market uncertainty weighed heavily on investor sentiment, particularly impacting growth-oriented technology stocks. With the possibility of de-escalation in the Middle East, investors showed renewed confidence, leading to a recovery in major tech names. The Technology Select Sector SPDR Fund (XLK) saw gains, reflecting the broader positive shift in the sector.
Sea is down 31% since the beginning of the year, and at $90.73 per share, it is trading 53.8% below its 52-week high of $196.50 from September 2025. Investors who bought $1,000 worth of Sea’s shares 5 years ago would now be looking at only $362.75.
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