A number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report came in largely as expected, reinforcing investor hopes for an upcoming Federal Reserve interest rate cut.

Data from the Bureau of Labor Statistics showed headline inflation for August at a 2.9% annual rate, with core inflation, which excludes volatile food and energy prices, holding steady at 3.1%. While inflation remains above the Federal Reserve's target, Wall Street interpreted the figures as not being high enough to prevent a widely anticipated rate reduction at the central bank's meeting next week. Analysts note that the Fed's focus has shifted toward the risks of a cooling labor market. With this report being the last key data point before the meeting, the market's conviction for a rate cut strengthened, fueling a broad rally that pushed major U.S. stock indexes to record highs.

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:

Broadcasting company iHeartMedia (NASDAQ:IHRT) jumped 7.4%. Is now the time to buy iHeartMedia? Access our full analysis report here, it’s free.

Media company fuboTV (NYSE:FUBO) jumped 5.1%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.

Consumer Electronics company GoPro (NASDAQ:GPRO) jumped 16.4%. Is now the time to buy GoPro? Access our full analysis report here, it’s free.

Apparel and Accessories company VF Corp (NYSE:VFC) jumped 4.2%. Is now the time to buy VF Corp? Access our full analysis report here, it’s free.

Apparel and Accessories company Carter's (NYSE:CRI) jumped 4.3%. Is now the time to buy Carter's? Access our full analysis report here, it’s free.

GoPro’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. But moves this big are rare even for GoPro and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 2 days ago when the stock dropped 5.9% as it pulled back from a significant rally the previous day as news of a potential new competitor product emerged.

The stock had soared over 15% on Monday in a rally attributed to retail-investor interest, often called "meme-stock" trading, rather than specific company news. Tuesday's decline appears to be a consolidation of those gains. Adding to the pressure, reports surfaced that competitor DJI inadvertently leaked a teaser for its new Osmo Nano compact action camera. The potential for increased competition in the action camera market could be creating headwinds for GoPro, causing some investors to take profits after the previous session's spike.

GoPro is up 89.1% since the beginning of the year, and at $2.08 per share, has set a new 52-week high. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $554.67.

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