What Happened?

A number of stocks fell in the afternoon session after a surprisingly hot wholesale inflation report fueled investor concerns about persistent price pressures. 

The Producer Price Index (PPI), a key measure of inflation at the wholesale level, increased by 0.5% in January, significantly higher than the 0.3% anticipated by economists. More concerning was the core PPI, which excludes volatile food and energy prices, as it surged by 0.8%, far exceeding the expected 0.3% rise. This data suggests that inflation may be more entrenched than previously thought, potentially impacting future interest rate decisions. In response to the news, major market indices, including the S&P 500, Dow Jones, and Nasdaq, all traded sharply lower as investors reassessed the economic outlook.

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:

• Healthcare Technology for Providers company Privia Health (NASDAQ: PRVA) fell 2.6%. Is now the time to buy Privia Health? Access our full analysis report here, it’s free.
• Drug Development Inputs & Services company Repligen (NASDAQ: RGEN) fell 3.1%. Is now the time to buy Repligen? Access our full analysis report here, it’s free.
• Testing & Diagnostics Services company RadNet (NASDAQ: RDNT) fell 3.2%. Is now the time to buy RadNet? Access our full analysis report here, it’s free.

Zooming In On RadNet (RDNT)

RadNet’s shares are somewhat volatile and have had 14 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 14 days ago when the stock gained 6.5% on the news that a softer-than-expected inflation report fueled hopes for interest rate cuts by the Federal Reserve. The January Consumer Price Index (CPI), a key measure of inflation, rose by 0.2%, which was less than economists had forecast, with the annual rate cooling to 2.4%. This encouraging data increased market expectations for the Fed to begin cutting interest rates as early as June. The news prompted a rally in Treasuries as their yields fell. While the market's reaction was initially described as a "bumpy ride" due to concerns in other sectors, the favorable inflation data ultimately helped calm Wall Street. Lower inflation is a key prerequisite for the central bank to ease its monetary policy, which is generally supportive of stock valuations.

RadNet is down 1.4% since the beginning of the year, and at $69.93 per share, it is trading 17.2% below its 52-week high of $84.48 from November 2025. Investors who bought $1,000 worth of RadNet’s shares 5 years ago would now be looking at an investment worth $3,603.

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