What Happened?
A number of stocks fell in the afternoon session after a weaker-than-expected U.S. consumer confidence report for September sparked concerns about the economic outlook.
The Conference Board's Consumer Confidence Index dropped to 94.2, its lowest reading since April. This decline was driven by a more pessimistic view of both current and future conditions. The Present Situation Index, which assesses current business and labor market conditions, fell by 7.0 points.
More critically, the Expectations Index, a gauge of the short-term outlook, also decreased. This index has remained below 80 since February 2025, a level that historically signals a potential recession on the horizon. The weakening confidence reflects consumers' growing concerns about the labor market, which could translate to reduced spending and broader economic slowing.
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:
- Renewable Energy company Fluence Energy (NASDAQ: FLNC) fell 7.4%. Is now the time to buy Fluence Energy? Access our full analysis report here, it’s free.
- Renewable Energy company Blink Charging (NASDAQ: BLNK) fell 6.6%. Is now the time to buy Blink Charging? Access our full analysis report here, it’s free.
- Renewable Energy company American Superconductor (NASDAQ: AMSC) fell 3.2%. Is now the time to buy American Superconductor? Access our full analysis report here, it’s free.
- Home Construction Materials company American Woodmark (NASDAQ: AMWD) fell 3%. Is now the time to buy American Woodmark? Access our full analysis report here, it’s free.
- Renewable Energy company Sunrun (NASDAQ: RUN) fell 2.5%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
Zooming In On Fluence Energy (FLNC)
Fluence Energy’s shares are extremely volatile and have had 73 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 4 days ago when the stock gained 2.6% 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.
Fluence Energy is down 36.2% since the beginning of the year, and at $10.79 per share, it is trading 54.1% below its 52-week high of $23.50 from November 2024. Investors who bought $1,000 worth of Fluence Energy’s shares at the IPO in October 2021 would now be looking at an investment worth $308.29.
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