What Happened?
Shares of life sciences company Revvity (NYSE: RVTY) fell 3.1% in the afternoon session after the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs.
Investor sentiment was soured by a report indicating that U.S. manufacturing activity contracted for the sixth consecutive month, a sign of economic weakness that was not well-received. Adding to the pressure, the 10-year Treasury yield climbed, which tends to make stocks less attractive to investors by offering a safer return on bonds. This combination of negative economic data and pressure from the bond market led to a widespread downturn across Wall Street, pulling down individual stocks like Revvity in the process.
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What Is The Market Telling Us
Revvity’s shares are somewhat volatile and have had 10 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 11 days ago when the stock gained 5.2% on the news that 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.
Revvity is down 22.2% since the beginning of the year, and at $87.09 per share, it is trading 31.8% below its 52-week high of $127.75 from September 2024. Investors who bought $1,000 worth of Revvity’s shares 5 years ago would now be looking at an investment worth $713.46.
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