What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

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:

• Life Insurance company F&G Annuities & Life (NYSE: FG) fell 2.6%. Is now the time to buy F&G Annuities & Life? Access our full analysis report here, it’s free.
• Property & Casualty Insurance company Old Republic International (NYSE: ORI) fell 2.9%. Is now the time to buy Old Republic International? Access our full analysis report here, it’s free.
• Property & Casualty Insurance company Erie Indemnity (NASDAQ: ERIE) fell 3.5%. Is now the time to buy Erie Indemnity? Access our full analysis report here, it’s free.

Zooming In On Erie Indemnity (ERIE)

Erie Indemnity’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 6.6% on the news that the company reported mixed third-quarter financial results that saw profits beat expectations while revenue fell short. 

The company announced earnings per share of $3.50, which was higher than analysts had forecast and an increase from the $3.06 reported in the same quarter of the previous year. However, revenue for the quarter came in at $1.07 billion, missing the consensus estimate of $1.08 billion. While net income grew compared to the prior year, the market appeared to focus on the sales figures. The negative reaction suggested investor concerns about the revenue shortfall outweighed the positive news of higher profitability during the quarter.

Erie Indemnity is flat since the beginning of the year, and at $275.34 per share, it is trading 38.9% below its 52-week high of $450.61 from March 2025. Investors who bought $1,000 worth of Erie Indemnity’s shares 5 years ago would now be looking at an investment worth $1,158.

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