What Happened?

A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. 

The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

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:

• Consumer Discretionary - Travel and Vacation Providers company American Airlines (NASDAQ: AAL) fell 4.9%. Is now the time to buy American Airlines? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company United Airlines (NASDAQ: UAL) fell 4.9%. Is now the time to buy United Airlines? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Viking (NYSE: VIK) fell 4.2%. Is now the time to buy Viking? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Frontier (NASDAQ: ULCC) fell 5.8%. Is now the time to buy Frontier? Access our full analysis report here, it’s free.
• Consumer Discretionary - Leisure Products company Harley-Davidson (NYSE: HOG) fell 4.8%. Is now the time to buy Harley-Davidson? Access our full analysis report here, it’s free.

Zooming In On Frontier (ULCC)

Frontier’s shares are extremely volatile and have had 64 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 about 2 months ago when the stock gained 3.8% on the news that reports suggested a potential merger with Spirit Airlines could be announced soon. 

The news emerged amid a broader sense of optimism among U.S. carriers for 2026 following a difficult 2025. According to reports, a combination between the two airlines could help stabilize the ultra-low-cost airline model in the United States. While the general outlook for the airline industry in 2026 was positive, sources indicated that carriers remained cautious due to potential political and operational uncertainties.

Frontier is up 7.5% since the beginning of the year, but at $4.92 per share, it is still trading 36.1% below its 52-week high of $7.69 from February 2025. Investors who bought $1,000 worth of Frontier’s shares at the IPO in March 2021 would now be looking at an investment worth $260.74.

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