What Happened?
A number of stocks fell in the after-market session after geopolitical tensions spiked following a strict deadline set for Iran.
President Trump set a high-stakes deadline for Iran to reopen the Strait of Hormuz, a vital oil shipping route. Investors were worried about a potential military strike if the deadline passes without a deal. The tension also pushed oil prices to their highest levels in years. This could increase costs for businesses, trigger inflation and slow down global growth.
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 - Specialized Consumer Services company 1-800-FLOWERS (NASDAQ: FLWS) fell 3.8%. Is now the time to buy 1-800-FLOWERS? Access our full analysis report here, it’s free.
- Consumer Discretionary - Home Furnishings company Purple (NASDAQ: PRPL) fell 2.7%. Is now the time to buy Purple? Access our full analysis report here, it’s free.
- Consumer Discretionary - Apparel and Accessories company Kontoor Brands (NYSE: KTB) fell 2.8%. Is now the time to buy Kontoor Brands? Access our full analysis report here, it’s free.
- Consumer Discretionary - Travel and Vacation Providers company Royal Caribbean (NYSE: RCL) fell 3.2%. Is now the time to buy Royal Caribbean? Access our full analysis report here, it’s free.
- Consumer Discretionary - Home Furnishings company Somnigroup (NYSE: SGI) fell 2.9%. Is now the time to buy Somnigroup? Access our full analysis report here, it’s free.
Zooming In On 1-800-FLOWERS (FLWS)
1-800-FLOWERS’s shares are extremely volatile and have had 47 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 20 days ago when the stock dropped 4.8% on the news that a combination of hot inflation data and geopolitical turmoil rattled investor confidence.
The Producer Price Index (PPI) surged 0.7% in February, more than doubling economist estimates of 0.3%. This spike in wholesale costs, driven by rising tariffs and manufacturing inputs, signaled a shift toward structural, "sticky" inflation that may persist longer than anticipated.
Anxiety intensified as Brent crude jumped 4% to $108 a barrel following reports that Israel struck a major Iranian gas facility. With Iran threatening retaliatory strikes on Gulf energy infrastructure, Wall Street increasingly priced in a scenario where rising energy costs flow directly to consumers. The selloff deepened as the Federal Reserve maintained interest rates at 3.5% to 3.75%, explicitly citing the "uncertain" economic impact of the escalating Middle East conflict.
While the Fed signaled one potential cut later in the year, Chair Jerome Powell admitted that progress on inflation had been slower than hoped, dousing dreams of a more aggressive pivot. This hawkish caution, reflected in the Dow's drop and 1% declines in the S&P 500 and Nasdaq, suggests that monetary easing may be delayed deep into the third quarter.
1-800-FLOWERS is down 13.6% since the beginning of the year, and at $3.19 per share, it is trading 54% below its 52-week high of $6.94 from July 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at only $117.84.
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