What Happened?
A number of stocks fell in the afternoon session after concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
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:
- Home Builders company Meritage Homes (NYSE:MTH) fell 4.2%. Is now the time to buy Meritage Homes? Access our full analysis report here, it’s free.
- Home Builders company Tri Pointe Homes (NYSE:TPH) fell 3.9%. Is now the time to buy Tri Pointe Homes? Access our full analysis report here, it’s free.
- Renewable Energy company SolarEdge (NASDAQ:SEDG) fell 11.4%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.
- Renewable Energy company Nextracker (NASDAQ:NXT) fell 5.3%. Is now the time to buy Nextracker? Access our full analysis report here, it’s free.
- Renewable Energy company Shoals (NASDAQ:SHLS) fell 4.8%. Is now the time to buy Shoals? Access our full analysis report here, it’s free.
Zooming In On SolarEdge (SEDG)
SolarEdge’s shares are extremely volatile and have had 96 moves greater than 5% over the last year. But moves this big are rare even for SolarEdge and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 5.8% on the news that key competitor Enphase Energy (ENPH) announced the U.S. launch of a new, technologically advanced microinverter for the commercial solar market. Enphase is now accepting pre-orders for its IQ9N-3P™ Commercial Microinverter, the company's first to be powered by advanced gallium nitride (GaN) technology.
This new product is designed for three-phase commercial solar projects and aims to simplify design, lower installation costs, and boost system efficiency. The use of innovative GaN technology positions Enphase to potentially capture a larger share of the commercial solar market. This competitive development appears to be raising concerns among SolarEdge investors about its market position and future growth prospects in the face of heightened competition.
SolarEdge is up 100% since the beginning of the year, but at $29.67 per share, it is still trading 13.8% below its 52-week high of $34.42 from September 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $153.26.
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