Applied Digital, HP, Korn Ferry, Hamilton Lane, and Lincoln Financial Group Shares Skyrocket, What You Need To Know

What Happened?

A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

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:

• Enterprise Networking company Applied Digital (NASDAQ:APLD) jumped 3.2%. Is now the time to buy Applied Digital? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company HP (NYSE:HPQ) jumped 4.1%. Is now the time to buy HP? Access our full analysis report here, it’s free.
• Professional Staffing & HR Solutions company Korn Ferry (NYSE:KFY) jumped 4.5%. Is now the time to buy Korn Ferry? Access our full analysis report here, it’s free.
• Custody Bank company Hamilton Lane (NASDAQ:HLNE) jumped 4%. Is now the time to buy Hamilton Lane? Access our full analysis report here, it’s free.
• Life Insurance company Lincoln Financial Group (NYSE:LNC) jumped 3.2%. Is now the time to buy Lincoln Financial Group? Access our full analysis report here, it’s free.

Zooming In On Korn Ferry (KFY)

Korn Ferry’s shares are not very volatile and have only had 6 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 9 days ago when the stock gained 3% on the news that stocks continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.

Korn Ferry is up 14.2% since the beginning of the year, and at $76.28 per share, it is trading close to its 52-week high of $79.40 from November 2024. Investors who bought $1,000 worth of Korn Ferry’s shares 5 years ago would now be looking at an investment worth $2,477.

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