What Happened?

A number of stocks jumped in the afternoon session after the U.S. Supreme Court struck down tariffs imposed by the Trump administration, a move expected to lower costs for manufacturers. 

In a 6-3 decision, the court ruled that the administration's use of the International Emergency Economic Powers Act of 1977 to justify the tariffs was not applicable. The removal of these tariffs is expected to reduce the cost of imported parts, materials, and equipment, which are crucial inputs for many U.S.-based manufacturing companies. Economists suggest this will alleviate budget pressures on these firms and could also reduce broader inflation concerns, potentially paving the way for accelerated interest rate cuts by the central bank. The ruling is seen as particularly beneficial for small and medium-sized businesses, which have shouldered much of the financial burden from the import duties.

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:

• Engineering and Design Services company MasTec (NYSE: MTZ) jumped 2.6%. Is now the time to buy MasTec? Access our full analysis report here, it’s free.
• Air Freight and Logistics company Expeditors (NYSE: EXPD) jumped 3.5%. Is now the time to buy Expeditors? Access our full analysis report here, it’s free.
• Electrical Systems company Methode Electronics (NYSE: MEI) jumped 2.9%. Is now the time to buy Methode Electronics? Access our full analysis report here, it’s free.

Zooming In On Expeditors (EXPD)

Expeditors’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago when the stock dropped 2.8% on the news that investors reacted to an 'underweight' rating from Barclays and digested ongoing concerns about the company's weak financial performance. 

The logistics firm grappled with significant challenges, as sales declined by 5.5% annually over the last two years. Earnings per share also fell during the same period, a trend that worried investors who see stock prices follow long-term earnings. Adding to the pressure, shrinking returns on capital suggested that increasing competition was eating into the company's profitability. The 'underweight' rating from Barclays analysts reinforced this bearish outlook for the stock. This negative view came even as the firm faced a tough market, with a tariff-linked trade downturn keeping ocean shipping rates down.

Expeditors is up 2.9% since the beginning of the year, and at $156.34 per share, it is trading close to its 52-week high of $165.04 from February 2026. Investors who bought $1,000 worth of Expeditors’s shares 5 years ago would now be looking at an investment worth $1,678.

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