What Happened?

A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, following stocks were impacted:

• Online Marketplace company EverQuote (NASDAQ:EVER) jumped 6.5%. Is now the time to buy EverQuote? Access our full analysis report here, it’s free.
• Discount Retailer company Five Below (NASDAQ:FIVE) jumped 5.1%. Is now the time to buy Five Below? Access our full analysis report here, it’s free.
• Modern Fast Food company Noodles (NASDAQ:NDLS) jumped 6.2%. Is now the time to buy Noodles? Access our full analysis report here, it’s free.
• Travel and Vacation Providers company Royal Caribbean (NYSE:RCL) jumped 5.2%. Is now the time to buy Royal Caribbean? Access our full analysis report here, it’s free.
• Leisure Facilities company European Wax Center (NASDAQ:EWCZ) jumped 5%. Is now the time to buy European Wax Center? Access our full analysis report here, it’s free.

Zooming In On EverQuote (EVER)

EverQuote’s shares are extremely volatile and have had 36 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 1 day ago when the stock dropped 7.3% on the news that President Trump criticized the Federal Reserve's approach to interest rate cuts, warning that the pace was slow and could hinder economic growth. Trump's comments added pressure to an already sensitive market, raising concerns about political interference in monetary policy. 

Meanwhile, Fed Chair Jerome Powell maintained a cautious stance the previous week, highlighting the difficulty of balancing the dual mandate of steady employment and price stability amid the escalating trade tension. Investor sentiment was further dampened by the absence of constructive progress in trade negotiations, especially US-China relations which took a turn for the worse in the previous week. 

Overall, the outlook seemed more unclear heading into the first quarter 2025 earnings season, as a combination of hard to predict monetary policy and unresolved trade tensions weighed on business confidence.

EverQuote is up 12.5% since the beginning of the year, but at $22.78 per share, it is still trading 23.3% below its 52-week high of $29.71 from March 2025. Investors who bought $1,000 worth of EverQuote’s shares 5 years ago would now be looking at an investment worth $598.70.

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