A number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.

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:

Real Estate Services company Opendoor (NASDAQ:OPEN) jumped 5.4%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free.

Apparel and Accessories company ThredUp (NASDAQ:TDUP) jumped 4.9%. Is now the time to buy ThredUp? Access our full analysis report here, it’s free.

Specialized Consumer Services company WeightWatchers (NASDAQ:WW) jumped 3.1%. Is now the time to buy WeightWatchers? Access our full analysis report here, it’s free.

Opendoor’s shares are extremely volatile and have had 87 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 6 days ago when the stock dropped 22.7% on the news that the company issued a weak financial forecast for the upcoming third quarter, overshadowing its recent earnings report. The online real estate platform projected third-quarter revenue between $800 million and $875 million, a steep decline from the previous year and well below market expectations. Opendoor also guided for a return to a loss on an adjusted earnings basis. This gloomy forecast soured investor sentiment despite the company reporting better-than-expected revenue of about $1.6 billion for its second quarter. The poor outlook stemmed from a difficult home-buying environment, as high interest rates discouraged potential buyers and decreased sales.

Opendoor is up 56% since the beginning of the year, but at $2.48 per share, it is still trading 22.7% below its 52-week high of $3.21 from July 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $228.57.

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