What Happened?
A number of stocks jumped in the afternoon session after a Gulf tanker attack slowed traffic through the strait, while hurricane-driven production halts shut in Gulf of Mexico output, the Financial Times noted.
The resulting supply squeeze lifted Brent crude above $104 per barrel and West Texas Intermediate to $92, according to CNBC. When global supplies face sudden restrictions, benchmark crude prices tend to spike, boosting revenue expectations and profitability for major oil and gas producers across the energy industry.
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:
- U.S. Shale E&P company Diamondback Energy (NASDAQ:FANG) jumped 4.2%. Is now the time to buy Diamondback Energy? Access our full analysis report here, it’s free.
- Infrastructure company DHT Holdings (NYSE:DHT) jumped 4.3%. Is now the time to buy DHT Holdings? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Kosmos Energy (NYSE:KOS) jumped 4.8%. Is now the time to buy Kosmos Energy? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company SM Energy (NYSE:SM) jumped 5.6%. Is now the time to buy SM Energy? Access our full analysis report here, it’s free.
- U.S. Shale E&P company Chord Energy (NASDAQ:CHRD) jumped 4.3%. Is now the time to buy Chord Energy? Access our full analysis report here, it’s free.
Zooming In On SM Energy (SM)
SM Energy’s shares are extremely volatile and have had 30 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.
SM Energy is up 94.2% since the beginning of the year, but at $37.15 per share, it is still trading 10% below its 52-week high of $41.29 from September 2026. Investors who bought $1,000 worth of SM Energy’s shares 5 years ago would now be looking at an investment worth $1,225.
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