What Happened?
A number of stocks fell in the afternoon session after the CPI print of 4.2% annual inflation (the hottest since 2023) revived the rate hike narrative.
Markets began to fully price a December Fed rate hike, and semiconductor stocks, which price on earnings years out, reprice faster than most sectors when discount rates move.
The SpaceX IPO added secondary pressure: the company closed investor orders ahead of its debut at a $1.77 trillion valuation, and MSC identified chip names among the holdings facing the largest forced outflows as investors reallocate to fund the listing. Trump’s mid-session Iran escalation, pledging to “attack very hard”, drove the Dow to session lows, sealing the risk-off tone.
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:
Zooming In On Entegris (ENTG)
Entegris’s shares are extremely volatile and have had 38 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 2 days ago when the stock gained 7.4% on the news that the broader semiconductor sector recovered from a sharp selloff during the previous trading session.
The decisive tone-setter was Nvidia CEO Jensen Huang, who described the previous week’s selloff as a chance to “buy at a discount,” adding that the AI revolution is still “at the beginning.” That framing, was enough to stabilize sentiment in a sector that had erased $1 trillion in market cap in a single session.
Entegris is up 44.2% since the beginning of the year, but at $129.16 per share, it is still trading 17.4% below its 52-week high of $156.44 from April 2026. Investors who bought $1,000 worth of Entegris’s shares 5 years ago would now be looking at an investment worth $1,118.
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