What Happened?
A number of stocks fell in the afternoon session after surging crude oil prices and a sharp jump in benchmark Treasury yields stoked renewed concerns over inflation and demand destruction. WTI crude rose to about $90 a barrel after renewed U.S.-Iran strikes disrupted shipping near Hormuz, according to CNBC. Bloomberg reported that rising oil prices are stoking inflation fears and reducing appetite for riskier assets as investors worry the Fed may keep rates higher. Higher pump and freight costs can pinch discretionary spending just as a steeper long-end yield raises consumer borrowing costs.
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:
- Vehicle Retailer company America's Car-Mart (NASDAQ:CRMT) fell 2.7%. Is now the time to buy America's Car-Mart? Access our full analysis report here, it’s free.
- Home Furniture Retailer company RH (NYSE:RH) fell 4.1%. Is now the time to buy RH? Access our full analysis report here, it’s free.
- Home Furniture Retailer company Arhaus (NASDAQ:ARHS) fell 4%. Is now the time to buy Arhaus? Access our full analysis report here, it’s free.
- Beauty and Cosmetics Retailer company Bath and Body Works (NYSE:BBWI) fell 3.5%. Is now the time to buy Bath and Body Works? Access our full analysis report here, it’s free.
- Apparel Retailer company Urban Outfitters (NASDAQ:URBN) fell 3.7%. Is now the time to buy Urban Outfitters? Access our full analysis report here, it’s free.
Zooming In On RH (RH)
RH’s shares are extremely volatile and have had 38 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 12 days ago when the stock dropped 7.8% on the news that Walmart’s results reinforced worries about a stretched U.S. consumer.
According to CNBC, Walmart (NYSE: WMT) shares fell nearly 10% even after a revenue beat and a full-year outlook raise, as U.S. comparable sales grew only 2.6% — short of Wall Street’s roughly 3.5% expectation — and third-quarter sales guidance of 3% to 3.75% looked light. CFO John David Rainey told CNBC the company was eligible for about $2.9 billion in tariff refunds, with just under $100 million still outstanding, and plans to use those funds to lower prices in the third quarter; he also flagged more than $2 billion in incremental fuel-related cost headwinds this year. That combination — softer comps, cautious near-term guidance, and explicit price and fuel pressure — spilled into discretionary and value retailers that investors treat as consumer proxies.
The selloff landed on top of already soft macro reads: July retail sales fell 0.6%, the first decline in nine months, and the University of Michigan’s latest consumer survey showed renewed pessimism as households absorb higher costs for gas and groceries. When the largest U.S. retailer signals customers are still spending but feeling the pinch, the tape often reprices the broader retail complex lower with it.
RH is down 25.3% since the beginning of the year, and at $144.50 per share, it is trading 42.4% below its 52-week high of $251 from September 2025. Investors who bought $1,000 worth of RH’s shares 5 years ago would now be looking at only $205.05.
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