What Happened?
A number of stocks fell in the afternoon session after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains.
Also, President Trump indicated he was willing to accept pain in the short term, and was aware his policies could cause a recession, but he remained more mindful of a more severe case of economic depression (higher unemployment and prolonged downturn). For investors, this suggested that the administration could prioritize long-term structural shifts over near-term economic stability, further increasing policy-driven risk in the markets.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, following stocks were impacted:
- Healthcare Technology for Providers company Omnicell (NASDAQ: OMCL) fell 5.4%. Is now the time to buy Omnicell? Access our full analysis report here, it’s free.
- Branded Pharmaceuticals company Royalty Pharma (NASDAQ: RPRX) fell 5.3%. Is now the time to buy Royalty Pharma? Access our full analysis report here, it’s free.
- Data & Business Process Services company EXL (NASDAQ: EXLS) fell 5.8%. Is now the time to buy EXL? Access our full analysis report here, it’s free.
- Traditional Media & Publishing company IMAX (NYSE: IMAX) fell 5.8%. Is now the time to buy IMAX? Access our full analysis report here, it’s free.
- Asset Management & Auction Services company OPENLANE (NYSE: KAR) fell 5.5%. Is now the time to buy OPENLANE? Access our full analysis report here, it’s free.
Zooming In On IMAX (IMAX)
IMAX’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.
IMAX is down 12.3% since the beginning of the year, and at $22.03 per share, it is trading 19.5% below its 52-week high of $27.37 from March 2025. Investors who bought $1,000 worth of IMAX’s shares 5 years ago would now be looking at an investment worth $2,156.
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