What Happened?

Shares of enterprise data capture company Zebra Technologies (NASDAQ: ZBRA) fell 3.4% in the afternoon session after it was caught in a broader market sell-off triggered by a federal court ruling on tariffs and rising bond yields. The downturn on Wall Street saw major indices like the Dow Jones, S&P 500, and Nasdaq all tumble, with tech stocks being among the hardest hit. The sell-off was sparked by a court decision that ruled most of the Trump global tariffs illegal. While the tariffs remain in place pending appeal, the news created market uncertainty, sending Treasury yields higher.

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What Is The Market Telling Us

Zebra’s shares are somewhat volatile and have had 10 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 11 days ago when the stock gained 4.6% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

Zebra is down 20% since the beginning of the year, and at $307.08 per share, it is trading 27.1% below its 52-week high of $421.11 from January 2025. Investors who bought $1,000 worth of Zebra’s shares 5 years ago would now be looking at an investment worth $1,043.

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