What Happened?

A number of stocks fell in the afternoon session after 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.

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 - Broadcasting company iHeartMedia (NASDAQ: IHRT) fell 9.4%. Is now the time to buy iHeartMedia? Access our full analysis report here, it’s free.
• Consumer Discretionary - Wireless, Cable and Satellite company Charter (NASDAQ: CHTR) fell 5.2%. Is now the time to buy Charter? Access our full analysis report here, it’s free.
• Consumer Discretionary - Wireless, Cable and Satellite company Cable One (NYSE: CABO) fell 11.4%. Is now the time to buy Cable One? Access our full analysis report here, it’s free.
• Consumer Discretionary - Specialized Consumer Services company 1-800-FLOWERS (NASDAQ: FLWS) fell 4.8%. Is now the time to buy 1-800-FLOWERS? Access our full analysis report here, it’s free.
• Consumer Discretionary - Real Estate Services company Compass (NYSE: COMP) fell 4.3%. Is now the time to buy Compass? Access our full analysis report here, it’s free.

Zooming In On Cable One (CABO)

Cable One’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. But moves this big are rare even for Cable One and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 23 days ago when the stock dropped 3.1% on the news that 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.

Cable One is down 6.4% since the beginning of the year, and at $97.50 per share, it is trading 64.7% below its 52-week high of $276.15 from April 2025. Investors who bought $1,000 worth of Cable One’s shares 5 years ago would now be looking at only $54.12.

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