What Happened?

A number of stocks fell in the morning session after the Trump administration's announcement of new global tariffs reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

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:

• Testing & Diagnostics Services company Guardant Health (NASDAQ: GH) fell 5.1%. Is now the time to buy Guardant Health? Access our full analysis report here, it’s free.
• Genomics & Sequencing company PacBio (NASDAQ: PACB) fell 3.1%. Is now the time to buy PacBio? Access our full analysis report here, it’s free.
• Dental Equipment & Technology company Align Technology (NASDAQ: ALGN) fell 6.8%. Is now the time to buy Align Technology? Access our full analysis report here, it’s free.
• Medical Devices & Supplies - Imaging, Diagnostics company QuidelOrtho (NASDAQ: QDEL) fell 5.1%. Is now the time to buy QuidelOrtho? Access our full analysis report here, it’s free.
• Healthcare Technology for Providers company Omnicell (NASDAQ: OMCL) fell 3.5%. Is now the time to buy Omnicell? Access our full analysis report here, it’s free.

Zooming In On Align Technology (ALGN)

Align Technology’s shares are quite volatile and have had 15 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 biggest move we wrote about over the last year was 3 months ago when the stock gained 6.9% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

Align Technology is up 13.5% since the beginning of the year, but at $177.07 per share, it is still trading 14.5% below its 52-week high of $207.19 from July 2025. Investors who bought $1,000 worth of Align Technology’s shares 5 years ago would now be looking at an investment worth $311.85.

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