What Happened?
A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East sent crude oil prices soaring, stoking fears of resurgent inflation.
The price for Brent crude, the international benchmark, leaped over 6% to $82.57 a barrel amid an escalating war with Iran, which has threatened to block the Strait of Hormuz. This critical waterway handles about 20% of global oil flow. A sustained increase in energy prices could translate to higher inflation, potentially impacting consumer spending and corporate earnings. This scenario also complicates the Federal Reserve's path forward, as persistent inflation could delay anticipated interest rate cuts that investors have been counting on to support the economy.
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:
- Electrical Systems company Powell (NASDAQ: POWL) fell 3.7%. Is now the time to buy Powell? Access our full analysis report here, it’s free.
- Engineered Components and Systems company Regal Rexnord (NYSE: RRX) fell 2.5%. Is now the time to buy Regal Rexnord? Access our full analysis report here, it’s free.
- Electrical Systems company Thermon (NYSE: THR) fell 3.8%. Is now the time to buy Thermon? Access our full analysis report here, it’s free.
- Home Construction Materials company Quanex (NYSE: NX) fell 2.9%. Is now the time to buy Quanex? Access our full analysis report here, it’s free.
- Aerospace company Curtiss-Wright (NYSE: CW) fell 2.8%. Is now the time to buy Curtiss-Wright? Access our full analysis report here, it’s free.
Zooming In On Thermon (THR)
Thermon’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 25 days ago when the stock gained 4.5% on the news that the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices. This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
Thermon is up 24.1% since the beginning of the year, but at $46.70 per share, it is still trading 12.8% below its 52-week high of $53.55 from February 2026. Investors who bought $1,000 worth of Thermon’s shares 5 years ago would now be looking at an investment worth $2,257.
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