What Happened?
A number of stocks fell in the afternoon session after surging oil prices and rising long-term interest rates stoked fears of a slowdown in industry orders.
The selloff followed President Donald Trump’s announcement of “Economic Warfare” against Iran, which pushed Brent crude up to $93.55 a barrel, CNBC reported. Simultaneously, the 10-year Treasury yield rose above 4.7% after FOMC minutes showed officials were willing to tighten policy if inflation did not cool.
For commercial aerospace, surging crude drives up jet fuel, a significant variable cost for airlines, while higher Treasury yields increase the financing costs for aircraft leasing. When operating margins compress, airlines typically delay fleet upgrades and defer aftermarket maintenance.Until fuel prices and borrowing costs retreat, carriers will likely freeze capital expenditures, keeping manufacturers under pressure.
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:
Zooming In On Ducommun (DCO)
Ducommun’s shares are somewhat volatile and have had 13 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 biggest move we wrote about over the last year was 6 months ago when the stock dropped 7.6% on the news that geopolitical tensions in the Middle East escalated, sent oil prices soaring and reignited inflation concerns. The Dow Jones Industrial Average fell over 1,000 points as the conflict involving the U.S. and Iran disrupted global energy markets, particularly through crucial shipping routes like the Strait of Hormuz. A barrel of Brent crude, the international benchmark, rose toward $85, stoking fears of a new wave of inflation. This spike in energy costs puts the Federal Reserve in a difficult position, as it may complicate future monetary policy decisions and delay potential interest rate cuts. The broad-based sell-off hit multiple sectors, with airline and retail stocks falling sharply on concerns of higher fuel costs and reduced consumer spending power.
Ducommun is up 95.3% since the beginning of the year, and at $189.02 per share, it is trading close to its 52-week high of $206.98 from August 2026. Investors who bought $1,000 worth of Ducommun’s shares 5 years ago would now be looking at an investment worth $3,670.
