Stocks Plummet Amidst Sharp Rise in Wholesale Inflation: Leidos, Blink Charging, Bloom Energy, Tecnoglass, and Builders FirstSource See Significant Declines

Several stocks, including Leidos, Blink Charging, Bloom Energy, Tecnoglass, and Builders FirstSource, fell in the after-market session following a sharp rise in wholesale inflation, fueled by tariffs. The July 2025 Producer Price Index jumped 0.9% against forecasts of a 0.2% rise, complicating the Federal Reserve's upcoming interest rate decisions. This data may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.

Several stocks, including Leidos, Blink Charging, Bloom Energy, Tecnoglass, and Builders FirstSource, experienced significant declines in the after-market session following a sharp rise in wholesale inflation. The July 2025 Producer Price Index (PPI) jumped 0.9% against forecasts of a 0.2% rise, indicating mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, potentially preventing rate cuts and creating a headwind for cyclical sectors like Industrials.

The PPI data, released on July 2, 2025, suggests that the cost of goods sold has increased significantly, which can negatively impact corporate profits. The primary catalyst for the stock market's reaction was the unexpected rise in wholesale inflation, which exceeded market expectations. This development may prompt the Federal Reserve to reassess its monetary policy, potentially delaying or preventing rate cuts that could have otherwise stimulated economic growth.

Among the affected stocks, Leidos (LDOS) fell by 3.5%, Blink Charging (BLNK) by 4.1%, Bloom Energy (BE) by 5.9%, Tecnoglass (TGLS) by 4.2%, and Builders FirstSource (BLDR) by 4.5%. The market's overreaction to the news presents opportunities for investors to consider buying high-quality stocks at potentially discounted prices.

Bloom Energy's shares, for instance, have shown extreme volatility, with 62 moves greater than 5% over the last year. Despite today's decline, the stock has gained 92.6% since the beginning of the year and set a new 52-week high. Investors who bought $1,000 worth of Bloom Energy's shares five years ago would now be looking at an investment worth $3,177.

Tecnoglass Inc. reported record second-quarter results and raised its full-year 2025 revenue guidance to a range of US$980 million to US$1.02 billion. This positive development suggests management's confidence in continued demand and the company's strengthened industry position. However, the uncertainty of U.S. aluminum tariffs remains a significant risk factor for the company.

The Federal Reserve is expected to closely monitor the latest inflation data as it prepares for its upcoming interest rate decisions. The rising cost pressures highlighted by the PPI data may influence the central bank's policy direction, potentially delaying or preventing rate cuts that could have otherwise stimulated economic growth.

In conclusion, the sharp rise in wholesale inflation has led to significant declines in several stocks, creating opportunities for investors to consider buying high-quality stocks at potentially discounted prices. The Federal Reserve's upcoming interest rate decisions will be closely watched to see how the central bank responds to the latest inflation data.

References:
[1] TradingView, "Leidos, Blink Charging, Bloom Energy, Tecnoglass, and Builders FirstSource Shares Plummet After Wholesale Inflation Rise," July 2, 2025, https://www.tradingview.com/news/stockstory:124e704fb094b:0-leidos-blink-charging-tecnoglass-and-builders-firstsource-shares-plummet-what-you-need-to-know/
[2] Simply Wall St, "How Investors May Respond to Tecnoglass TGLS Record Results," August 7, 2025, https://simplywall.st/stocks/us/capital-goods/nyse-tgls/tecnoglass/news/how-investors-may-respond-to-tecnoglass-tgls-record-results