What Happened?
A number of stocks fell in the afternoon session after the combination of rising oil prices, higher Treasury yields, and shifting rate expectations tightened the macro backdrop for corporate clients.
ADP's May payroll print (122,000 jobs added, above the 110,000 consensus) confirmed the labor market remains firm, but the data also pushed rate hike expectations higher, reducing the likelihood of the relief companies had been anticipating.
Adding to the weakness, GitLab announced it would cut approximately 14% of its workforce and exit 22 countries, signaling that enterprise clients continue to manage costs tightly even amid a broader market recovery. In a sector where spending depends on corporate confidence, higher-for-longer rates and geopolitical uncertainty are a direct headwind.
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:
- Data & Business Process Services company Equifax (NYSE: EFX) fell 4.7%. Is now the time to buy Equifax? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company WEBTOON (NASDAQ: WBTN) fell 4.6%. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free.
- IT Distribution & Solutions company ScanSource (NASDAQ: SCSC) fell 4.5%. Is now the time to buy ScanSource? Access our full analysis report here, it’s free.
Zooming In On Equifax (EFX)
Equifax’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 3.4% on the news that a key inflation report showed producer prices surged more than anticipated in April.
The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI), which measures inflation before it reaches consumers, jumped 1.4% for the month. This was the largest monthly increase since March 2022. On an annual basis, producer prices rose 6%, the highest since December 2022, partly driven by elevated energy costs.
This hotter-than-expected data suggested that inflationary pressures might persist in the supply chain, which could lead companies to pass on higher costs to customers. Such trends often attract the attention of the Federal Reserve and influence future monetary policy decisions, creating uncertainty for investors.
Equifax is down 20.9% since the beginning of the year, and at $169.32 per share, it is trading 37.7% below its 52-week high of $271.92 from June 2025. Investors who bought $1,000 worth of Equifax’s shares 5 years ago would now be looking at only $739.44.
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