What Happened?
A number of stocks fell in the afternoon session after the August Producer Price Index rose 5.4% year-over-year and crude oil climbed past $100 per barrel, fueling renewed fears of stubborn inflation and extended borrowing costs. According to the U.S. Bureau of Labor Statistics, the Producer Price Index for final demand increased 0.4% month-over-month in August, driven largely by rising energy and diesel fuel costs. The 5.4% annual increase topped forecasts, underscoring persistent wholesale cost pressures that threaten to spill over into consumer prices. Compounding the issue, Bloomberg reported that Brent crude oil pushed past the critical $100-per-barrel threshold for the first time since July, raising operating and transportation expenses across multiple industries. For the retail sector, this creates a dual headwind: higher logistics costs compress gross margins, while higher prices at the pump squeeze household discretionary spending. Investors are increasingly concerned that this resilient inflation will push central banks to keep interest rates elevated for longer, increasing capital costs and dampening corporate profitability across the broader economy.
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:
- Vehicle Retailer company America's Car-Mart (NASDAQ: CRMT) fell 4.8%. Is now the time to buy America's Car-Mart? Access our full analysis report here, it’s free.
- Apparel Retailer company Zumiez (NASDAQ: ZUMZ) fell 4%. Is now the time to buy Zumiez? Access our full analysis report here, it’s free.
- Department Store company Macy's (NYSE: M) fell 4.3%. Is now the time to buy Macy's? Access our full analysis report here, it’s free.
- Apparel Retailer company Abercrombie and Fitch (NYSE: ANF) fell 3.9%. Is now the time to buy Abercrombie and Fitch? Access our full analysis report here, it’s free.
- Apparel Retailer company Victoria's Secret (NYSE: VSXY) fell 4.2%. Is now the time to buy Victoria's Secret? Access our full analysis report here, it’s free.
Zooming In On America's Car-Mart (CRMT)
America's Car-Mart’s shares are extremely volatile and have had 79 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 9 days ago when the stock dropped 2.7% on the news that surging crude oil prices and a sharp jump in benchmark Treasury yields stoked renewed concerns over inflation and demand destruction. WTI crude rose to about $90 a barrel after renewed U.S.-Iran strikes disrupted shipping near Hormuz, according to CNBC. Bloomberg reported that rising oil prices are stoking inflation fears and reducing appetite for riskier assets as investors worry the Fed may keep rates higher. Higher pump and freight costs can pinch discretionary spending just as a steeper long-end yield raises consumer borrowing costs.
America's Car-Mart is down 94.1% since the beginning of the year, and at $1.43 per share, it is trading 96% below its 52-week high of $35.36 from September 2025. Investors who bought $1,000 worth of America's Car-Mart’s shares 5 years ago would now be looking at only $11.93.
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