A number of stocks fell in the afternoon session after markets pulled back with the decline concentrated in the tech space as investors engaged in profit-taking following a robust week that saw the S&P 500 hit a new record.

Adding to the pressure, new inflation data, specifically the Core PCE, showed an acceleration in July, signaling that rising prices remain a risk despite being in line with expectations. This confluence of factors, including market highs heading into a historically weak September, led to a pullback, with the Nasdaq Composite shedding 1.15%. While the Federal Reserve has hinted at potential rate cuts, the focus on inflation and the jobs market continues to influence investor sentiment.

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:

Modern Fast Food company Wingstop (NASDAQ:WING) fell 3.8%. Is now the time to buy Wingstop? Access our full analysis report here, it’s free.

Traditional Fast Food company Dutch Bros (NYSE:BROS) fell 4.3%. Is now the time to buy Dutch Bros? Access our full analysis report here, it’s free.

Leisure Facilities company Topgolf Callaway (NYSE:MODG) fell 3.3%. Is now the time to buy Topgolf Callaway? Access our full analysis report here, it’s free.

Media company Warner Bros. Discovery (NASDAQ:WBD) fell 4.1%. Is now the time to buy Warner Bros. Discovery? Access our full analysis report here, it’s free.

Electrical Systems company Hubbell (NYSE:HUBB) fell 3.6%. Is now the time to buy Hubbell? Access our full analysis report here, it’s free.

Dutch Bros’s shares are very volatile and have had 29 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 4 days ago when the stock gained 6.7% on the news that positive analyst commentary highlighted the company's strong revenue growth and expanding margins. TD Cowen analyst Andrew Charles reiterated a positive outlook, pointing to a 28% year-over-year increase in revenue and improved profitability from the company's recent earnings report. The optimism is fueled by Dutch Bros' successful menu innovation, better operational efficiency, and growing customer traffic. Adding to the positive sentiment, the company recently announced the return of its popular fall-themed drinks. The stock's upward momentum is also supported by technical factors, as it recently crossed above its 200-day moving average, a signal that often suggests a long-term bullish trend to investors.

Dutch Bros is up 27.6% since the beginning of the year, but at $71.83 per share, it is still trading 15.9% below its 52-week high of $85.37 from February 2025. Investors who bought $1,000 worth of Dutch Bros’s shares at the IPO in September 2021 would now be looking at an investment worth $1,958.

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