What Happened?

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:

• Professional Tools and Equipment company Kennametal (NYSE: KMT) fell 2.8%. Is now the time to buy Kennametal? Access our full analysis report here, it’s free for active Edge members.
• General Industrial Machinery company Luxfer (NYSE: LXFR) fell 2.9%. Is now the time to buy Luxfer? Access our full analysis report here, it’s free for active Edge members.
• Building Materials company Tecnoglass (NYSE: TGLS) fell 3.4%. Is now the time to buy Tecnoglass? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components company Allient (NASDAQ: ALNT) fell 2.9%. Is now the time to buy Allient? Access our full analysis report here, it’s free for active Edge members.
• Commercial Building Products company Apogee (NASDAQ: APOG) fell 3%. Is now the time to buy Apogee? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Tecnoglass (TGLS)

Tecnoglass’s shares are somewhat volatile and have had 12 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 3.1% on the news that a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve. 

The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy. Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.

Tecnoglass is down 19.1% since the beginning of the year, and at $63.82 per share, it is trading 27.8% below its 52-week high of $88.42 from June 2025. Investors who bought $1,000 worth of Tecnoglass’s shares 5 years ago would now be looking at an investment worth $11,583.

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