What Happened?
A number of stocks fell in the morning session after President Trump declared the Iran ceasefire "over" and threatened fresh strikes, sending oil prices soaring and triggering a broad risk-off move.
Business services (staffing, consulting, payment processing, and outsourcing firms) are a bet on the pace of economic activity, so they tend to fall when growth expectations wobble.
A crude spike (Brent +7.5% to $79.65) revives inflation fears, and the accompanying jump in global bond yields raises the discount rate applied to these companies' future cash flows.
Also, corporate clients typically freeze discretionary spending on consultants and temporary labor when geopolitical uncertainty clouds the outlook. With Fed minutes due and officials having signaled possible further rate hikes, the sector's dual sensitivity to both slower activity and higher rates left it firmly in the red.
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:
- Data & Business Process Services company Planet Labs (NYSE:PL) fell 3.7%. Is now the time to buy Planet Labs? Access our full analysis report here, it’s free.
- Advertising & Marketing Services company Magnite (NASDAQ:MGNI) fell 3.4%. Is now the time to buy Magnite? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company Ziff Davis (NASDAQ:ZD) fell 3.4%. Is now the time to buy Ziff Davis? Access our full analysis report here, it’s free.
Zooming In On Planet Labs (PL)
Planet Labs’s shares are extremely volatile and have had 68 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 about 21 hours ago when the stock dropped 6.8% on the news that a broader tech sector sell-off appeared to outweigh the company's announcement of a successful satellite launch.
Planet Labs announced the successful launch of Pelican-11, a tech demonstration satellite for its next-generation high-resolution fleet. However, this positive news was not enough to lift the stock.
The decline occurred amid a wider downturn in the technology sector, with the Nasdaq index falling about 0.9%. The negative market sentiment was attributed to investor concerns about tech spending and demand, which seemed to overshadow Planet Labs' operational success.
Planet Labs is up 34.1% since the beginning of the year, but at $27.38 per share, it is still trading 46.7% below its 52-week high of $51.40 from May 2026. Investors who bought $1,000 worth of Planet Labs’s shares 5 years ago would now be looking at an investment worth $2,751.
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