What Happened?
A number of stocks jumped in the afternoon session after the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices.
This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
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:
- Engineered Components and Systems company Regal Rexnord (NYSE:RRX) jumped 5.6%. Is now the time to buy Regal Rexnord? Access our full analysis report here, it’s free.
- Professional Tools and Equipment company ESAB (NYSE:ESAB) jumped 5.2%. Is now the time to buy ESAB? Access our full analysis report here, it’s free.
- Gas and Liquid Handling company Standex (NYSE:SXI) jumped 5.2%. Is now the time to buy Standex? Access our full analysis report here, it’s free.
- Electrical Systems company Sanmina (NASDAQ:SANM) jumped 5.6%. Is now the time to buy Sanmina? Access our full analysis report here, it’s free.
- Aerospace company Curtiss-Wright (NYSE:CW) jumped 5.1%. Is now the time to buy Curtiss-Wright? Access our full analysis report here, it’s free.
Zooming In On Regal Rexnord (RRX)
Regal Rexnord’s shares are somewhat volatile and have had 14 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 1 day ago when the stock gained 6.7% on the news that the company reported mixed fourth-quarter results, where a slight earnings beat seemed to overshadow misses on revenue and guidance.
The company posted an adjusted profit of $2.51 per share, which was just above Wall Street's expectation of $2.48. However, revenue for the quarter came in at $1.52 billion, falling short of the $1.54 billion consensus estimate. Looking ahead, Regal Rexnord provided full-year adjusted EPS guidance with a midpoint of $10.60, which was also slightly below analyst forecasts. Despite the weaker top-line results and cautious outlook, investors may have focused on positive aspects such as the year-over-year expansion in the company's operating margin, which grew from 8.8% to 10.8%.
Regal Rexnord is up 45.1% since the beginning of the year, and at $211.93 per share, has set a new 52-week high. Investors who bought $1,000 worth of Regal Rexnord’s shares 5 years ago would now be looking at an investment worth $1,620.
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