What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

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:

• Home Builders company Installed Building Products (NYSE: IBP) fell 2.6%. Is now the time to buy Installed Building Products? Access our full analysis report here, it’s free.
• Renewable Energy company Plug Power (NASDAQ: PLUG) fell 4.6%. Is now the time to buy Plug Power? Access our full analysis report here, it’s free.
• Ground Transportation company Hertz (NASDAQ: HTZ) fell 2.9%. Is now the time to buy Hertz? Access our full analysis report here, it’s free.
• Renewable Energy company Shoals (NASDAQ: SHLS) fell 4.5%. Is now the time to buy Shoals? Access our full analysis report here, it’s free.
• Maintenance and Repair Distributors company Distribution Solutions (NASDAQ: DSGR) fell 3%. Is now the time to buy Distribution Solutions? Access our full analysis report here, it’s free.

Zooming In On Plug Power (PLUG)

Plug Power’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 14 days ago when the stock dropped 7.3% on the news that an analyst at TD Cowen downgraded the stock to Hold from Buy and lowered the price target to $2 from $4. 

The downgrade came amid a challenging outlook for the broader hydrogen industry. A report from Wood Mackenzie referred to 2026 as a “year of reckoning for the hydrogen sector,” which would be marked by a “fundamental reassessment of what drives project economies.” This sentiment suggested that the optimism seen in previous years was facing a reality check, adding to the pressure on companies like Plug Power.

Plug Power is up 10.5% since the beginning of the year, but at $2.47 per share, it is still trading 40.3% below its 52-week high of $4.13 from October 2025. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $37.51.

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