What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded from a week of heavy selling.
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.
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:
- Hardware & Infrastructure company Super Micro (NASDAQ: SMCI) jumped 10.3%. Is now the time to buy Super Micro? Access our full analysis report here, it’s free.
- Terrestrial Telecommunication Services company Lumen (NYSE: LUMN) jumped 29.3%. Is now the time to buy Lumen? Access our full analysis report here, it’s free.
- Satellite Telecommunication Services company Globalstar (NASDAQ: GSAT) jumped 6.1%. Is now the time to buy Globalstar? Access our full analysis report here, it’s free.
- Electronic Components & Manufacturing company Amphenol (NYSE: APH) jumped 7.2%. Is now the time to buy Amphenol? Access our full analysis report here, it’s free.
- Electronic Components & Manufacturing company Jabil (NYSE: JBL) jumped 6.9%. Is now the time to buy Jabil? Access our full analysis report here, it’s free.
Zooming In On Lumen (LUMN)
Lumen’s shares are extremely volatile and have had 65 moves greater than 5% over the last year. But moves this big are rare even for Lumen and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 4.2% on the news that President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies.
The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed. Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks.
The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.
Lumen is up 4.7% since the beginning of the year, but at $8.06 per share, it is still trading 31.9% below its 52-week high of $11.83 from November 2025. Investors who bought $1,000 worth of Lumen’s shares 5 years ago would now be looking at an investment worth $651.17.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report, it’s free.
