What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- General Industrial Machinery company Luxfer (NYSE: LXFR) jumped 5.1%. Is now the time to buy Luxfer? Access our full analysis report here, it’s free.
- Home Builders company LGI Homes (NASDAQ: LGIH) jumped 5.1%. Is now the time to buy LGI Homes? Access our full analysis report here, it’s free.
- Medical Devices & Supplies - Imaging, Diagnostics company QuidelOrtho (NASDAQ: QDEL) jumped 7%. Is now the time to buy QuidelOrtho? Access our full analysis report here, it’s free.
- Dental Equipment & Technology company Dentsply Sirona (NASDAQ: XRAY) jumped 5%. Is now the time to buy Dentsply Sirona? Access our full analysis report here, it’s free.
- Senior Health, Home Health & Hospice company AdaptHealth (NASDAQ: AHCO) jumped 5.8%. Is now the time to buy AdaptHealth? Access our full analysis report here, it’s free.
Zooming In On QuidelOrtho (QDEL)
QuidelOrtho’s shares are very volatile and have had 27 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 15 days ago when the stock gained 5.9% on the news that the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains.
However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels.
Still, the agreement has cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism. The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand.
QuidelOrtho is down 30.7% since the beginning of the year, and at $31.23 per share, it is trading 34.4% below its 52-week high of $47.61 from January 2025. Investors who bought $1,000 worth of QuidelOrtho’s shares 5 years ago would now be looking at an investment worth $198.30.
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