What Happened?
A number of stocks fell in the afternoon session as concerns grew over the risk of stagflation, a mix of slow economic growth and high inflation, due to the ongoing conflict with Iran.
The war escalated into a global energy supply shock, with disruptions to cargo in the Strait of Hormuz pushing Brent crude oil prices above $100 per barrel. This surge in energy costs raised fears of persistent inflation that could harm the global economy. Compounding these concerns, recent data showed the U.S. economy was already weakening before the conflict, with the fourth-quarter 2025 growth estimate revised down to a sluggish 0.7% annual rate. This combination of slowing growth and rising inflation had investors worried, as it complicates the Federal Reserve's policy path and threatens both corporate profits and consumer spending power.
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:
- Law Enforcement Suppliers company Byrna (NASDAQ: BYRN) fell 2.6%. Is now the time to buy Byrna? Access our full analysis report here, it’s free.
- Water Infrastructure company Energy Recovery (NASDAQ: ERII) fell 2.1%. Is now the time to buy Energy Recovery? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Concrete Pumping (NASDAQ: BBCP) fell 2.1%. Is now the time to buy Concrete Pumping? Access our full analysis report here, it’s free.
- Specialty Equipment Distributors company Alta (NYSE: ALTG) fell 0.6%. Is now the time to buy Alta? Access our full analysis report here, it’s free.
- Renewable Energy company Plug Power (NASDAQ: PLUG) fell 2.7%. Is now the time to buy Plug Power? Access our full analysis report here, it’s free.
Zooming In On Plug Power (PLUG)
Plug Power’s shares are extremely volatile and have had 88 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 8 days ago when the stock dropped 8.5% on the news that geopolitical tensions in the Middle East escalated, sent oil prices soaring and reignited inflation concerns.
The Dow Jones Industrial Average fell over 1,000 points as the conflict involving the U.S. and Iran disrupted global energy markets, particularly through crucial shipping routes like the Strait of Hormuz. A barrel of Brent crude, the international benchmark, rose toward $85, stoking fears of a new wave of inflation. This spike in energy costs puts the Federal Reserve in a difficult position, as it may complicate future monetary policy decisions and delay potential interest rate cuts. The broad-based sell-off hit multiple sectors, with airline and retail stocks falling sharply on concerns of higher fuel costs and reduced consumer spending power.
Plug Power is down 3.8% since the beginning of the year, and at $2.15 per share, it is trading 48.1% below its 52-week high of $4.13 from October 2025. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $46.17.
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