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A number of stocks fell in the afternoon session after investors grew anxious as the U.S. government shutdown extended into its seventh day, creating widespread uncertainty. The political stalemate in Washington has tangible consequences for the economy and markets. A key impact is the delay in the release of crucial economic data, including the September jobs report, leaving the Federal Reserve with less information to guide its policy decisions. The shutdown is also causing direct disruptions, with staffing shortages at the Federal Aviation Administration (FAA) leading to widespread delays at major airports. This combination of economic ambiguity and real-world service interruptions has dampened investor confidence across multiple sectors.
Adding to the unease, Chief Economist at Moody's Analytics, Mark Zandi, warned that 22 states are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position. Also, the latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations are rising, while their outlook on the labor market is deteriorating. Consumers expressed greater concern about potential job losses and expect lower earnings growth, factors that directly impact discretionary spending.
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:
Sanmina’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Sanmina and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 22.7% after the company was seen as a key beneficiary of a major partnership announced between Advanced Micro Devices (AMD) and OpenAI. The market reacted positively after investors connected the deal to Sanmina's pending acquisition of a data center infrastructure manufacturing business from AMD. That agreement would make Sanmina a key U.S.-based manufacturing partner for AMD's new products. The partnership involved OpenAI's commitment to purchase a significant amount of AMD's graphics processing units (GPUs). Investors speculated that Sanmina could benefit if it was commissioned to build the server racks containing AMD's chips for the project. An analyst from BofA Securities noted that the announcement was viewed as a positive for Sanmina, as it showed that AMD's chips were gaining traction in the market.
Sanmina is up 65.5% since the beginning of the year, but at $124.93 per share, it is still trading 10.8% below its 52-week high of $140 from October 2025. Investors who bought $1,000 worth of Sanmina’s shares 5 years ago would now be looking at an investment worth $4,571.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
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