What Happened?

A number of stocks fell in the afternoon session after the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs. 

Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.

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 Electronics company GoPro (NASDAQ: GPRO) fell 7%. Is now the time to buy GoPro? Access our full analysis report here, it’s free.
• Consumer Subscription company Chegg (NYSE: CHGG) fell 7.2%. Is now the time to buy Chegg? Access our full analysis report here, it’s free.
• Renewable Energy company Plug Power (NASDAQ: PLUG) fell 7.3%. Is now the time to buy Plug Power? Access our full analysis report here, it’s free.
• Renewable Energy company SolarEdge (NASDAQ: SEDG) fell 7.3%. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.
• Beverages, Alcohol, and Tobacco company Tilray (NASDAQ: TLRY) fell 10.8%. Is now the time to buy Tilray? Access our full analysis report here, it’s free.

Zooming In On Tilray (TLRY)

Tilray’s shares are extremely volatile and have had 68 moves greater than 5% over the last year. But moves this big are rare even for Tilray and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 4 days ago when the stock dropped 5.7% on the news that a recent rally in cannabis stocks, fueled by hopes of federal marijuana rescheduling in the U.S., reversed course. The decline represents a sharp pullback for the sector after significant gains the previous day, when Tilray jumped over 7%. The recent investor optimism was sparked by comments that a decision on rescheduling marijuana could come “within weeks” and the filing of a new bill by Congressional Democrats to deschedule cannabis entirely. However, Friday's retreat suggests investor skepticism about the prospects of federal action. The sector-wide sell-off overshadowed positive company-specific news for Tilray, which announced the introduction of three new EU-GMP certified medical cannabis strains to expand its presence in the German market.

Tilray is down 13% since the beginning of the year, and at $1.27 per share, it is trading 29.8% below its 52-week high of $1.81 from September 2024.

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