What Happened?
A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
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:
- Consumer Discretionary - Gaming Solutions company Inspired (NASDAQ: INSE) fell 3.7%. Is now the time to buy Inspired? Access our full analysis report here, it’s free.
- Consumer Discretionary - Specialized Consumer Services company LKQ (NASDAQ: LKQ) fell 3.2%. Is now the time to buy LKQ? Access our full analysis report here, it’s free.
- Consumer Discretionary - Travel and Vacation Providers company Hilton (NYSE: HLT) fell 2.3%. Is now the time to buy Hilton? Access our full analysis report here, it’s free.
- Consumer Discretionary - Travel and Vacation Providers company Royal Caribbean (NYSE: RCL) fell 2.9%. Is now the time to buy Royal Caribbean? Access our full analysis report here, it’s free.
- Consumer Discretionary - Toys and Electronics company Hasbro (NASDAQ: HAS) fell 4.4%. Is now the time to buy Hasbro? Access our full analysis report here, it’s free.
Zooming In On Hasbro (HAS)
Hasbro’s shares are not very volatile and have only had 7 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 biggest move we wrote about over the last year was 10 months ago when the stock gained 16.1% on the news that the company reported strong first quarter 2025 results which significantly exceeded analysts' expectations across revenue, EPS, and EBITDA. The real spark came from Magic: The Gathering and other digital games, which pushed the gaming unit up 46%, a big jump that drove the whole business. Zooming out, we think this quarter featured some important positives.
Hasbro is up 17% since the beginning of the year, and at $97.07 per share, it is trading close to its 52-week high of $105.94 from February 2026. Investors who bought $1,000 worth of Hasbro’s shares 5 years ago would now be looking at an investment worth $1,062.
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