What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded from a week of heavy selling.
This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
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:
- Terrestrial Telecommunication Services company Cogent (NASDAQ: CCOI) jumped 6.8%. Is now the time to buy Cogent? Access our full analysis report here, it’s free.
- Business Process Outsourcing & Consulting company Concentrix (NASDAQ: CNXC) jumped 5.8%. Is now the time to buy Concentrix? Access our full analysis report here, it’s free.
- IT Services & Consulting company DXC (NYSE: DXC) jumped 6.7%. Is now the time to buy DXC? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company WEBTOON (NASDAQ: WBTN) jumped 5.2%. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free.
- IT Services & Consulting company Kyndryl (NYSE: KD) jumped 5.7%. Is now the time to buy Kyndryl? Access our full analysis report here, it’s free.
Zooming In On Cogent (CCOI)
Cogent’s shares are extremely volatile and have had 33 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 16 days ago when the stock gained 3.3% on the news that President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies.
The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off. Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.
Cogent is up 17.8% since the beginning of the year, but at $24.30 per share, it is still trading 70.9% below its 52-week high of $83.44 from February 2025. Investors who bought $1,000 worth of Cogent’s shares 5 years ago would now be looking at an investment worth $394.87.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
