What Happened?

A number of stocks jumped in the afternoon session after investors rotated out of tech names to capitalize on attractive relative valuations. 

Market analysts noted that while technology remained a long-term theme, the immediate growth story was shifting toward sectors that lagged the AI-driven run-up. As high-growth tech names faced profit-taking, capital flowed into banks and asset managers viewed as offering more defensible earnings multiples in the current climate. The move reflected a classic pivot, in which traders lock in gains from volatile innovators and redeploy them into the "value" side of the market to maintain exposure while reducing risk. The positive mood was supported by a Goldman Sachs forecast that projected U.S. economic growth would accelerate to 2.6 percent in 2026. This outlook was based on expectations of tax cuts, easier financial conditions, and a reduced economic drag from tariffs.

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:

• Student Loan company Nelnet (NYSE: NNI) jumped 4.3%. Is now the time to buy Nelnet? Access our full analysis report here, it’s free.
• Personal Loan company LendingClub (NYSE: LC) jumped 4.4%. Is now the time to buy LendingClub? Access our full analysis report here, it’s free.
• Specialty Finance company Capital Southwest (NASDAQ: CSWC) jumped 3.4%. Is now the time to buy Capital Southwest? Access our full analysis report here, it’s free.
• Asset Management company Ares (NYSE: ARES) jumped 3.8%. Is now the time to buy Ares? Access our full analysis report here, it’s free.
• Diversified Financial Services company NCR Atleos (NYSE: NATL) jumped 4.9%. Is now the time to buy NCR Atleos? Access our full analysis report here, it’s free.

Zooming In On NCR Atleos (NATL)

NCR Atleos’s shares are quite volatile and have had 15 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 5 months ago when the stock gained 5.1% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. 

Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

NCR Atleos is up 8.4% since the beginning of the year, and at $40.34 per share, has set a new 52-week high. Investors who bought $1,000 worth of NCR Atleos’s shares at the IPO in October 2023 would now be looking at an investment worth $1,754.

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