A number of stocks jumped in the morning session after an in-line inflation report fueled hopes for interest rate cuts and the U.S. and China agreed to extend their tariff truce. The Consumer Price Index (CPI), a key measure of inflation, came in largely as expected, holding steady at 2.7% year-over-year. This reading boosted investor optimism that the Federal Reserve will have room to lower interest rates at its next meeting, which could reduce borrowing costs for companies and consumers.

Adding to the positive sentiment, the U.S. and China extended their tariff truce for another 90 days. This development alleviates concerns about renewed trade tensions, which is a significant relief for industrial companies reliant on global supply chains and international sales. Together, these events create a favorable outlook for economic growth, benefiting cyclical sectors like industrials.

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:

Air Freight and Logistics company Hub Group (NASDAQ:HUBG) jumped 4.2%. Is now the time to buy Hub Group? Access our full analysis report here, it’s free.

Ground Transportation company Universal Logistics (NASDAQ:ULH) jumped 6.4%. Is now the time to buy Universal Logistics? Access our full analysis report here, it’s free.

Automobile Manufacturing company THOR Industries (NYSE:THO) jumped 4.8%. Is now the time to buy THOR Industries? Access our full analysis report here, it’s free.

Custom Parts Manufacturing company Stratasys (NASDAQ:SSYS) jumped 3.8%. Is now the time to buy Stratasys? Access our full analysis report here, it’s free.

Ground Transportation company Schneider (NYSE:SNDR) jumped 3.6%. Is now the time to buy Schneider? Access our full analysis report here, it’s free.

Universal Logistics’s shares are very volatile and have had 21 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 14 days ago when the stock dropped 11% on the news that bellwether United Parcel Service (UPS) reported weak earnings and withheld its full-year guidance, citing “macro-economic uncertainty” and low consumer sentiment. The logistics giant reported a decline in revenue and missed profit estimates, sending a chill through the entire logistics chain. UPS pointed to a challenging economic environment and near-historic lows in U.S. consumer confidence as key factors for its performance. By withholding its full-year forecast, the company signaled significant uncertainty ahead, confirming fears of a broader economic slowdown that could impact demand for shipping and freight services. This news weighed on other ground and rail transportation stocks, as investors worried that the headwinds affecting UPS could be a sign of wider issues across the industry.

Universal Logistics is down 43.9% since the beginning of the year, and at $24.53 per share, it is trading 53.1% below its 52-week high of $52.28 from November 2024. Investors who bought $1,000 worth of Universal Logistics’s shares 5 years ago would now be looking at an investment worth $1,209.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.