What Happened?

A number of stocks jumped in the afternoon session after investors grew more optimistic about a potential Federal Reserve interest rate cut in December. 

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

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:

• Investment Banking & Brokerage company Lazard (NYSE: LAZ) jumped 3.7%. Is now the time to buy Lazard? Access our full analysis report here, it’s free for active Edge members.
• Investment Banking & Brokerage company Evercore (NYSE: EVR) jumped 3.7%. Is now the time to buy Evercore? Access our full analysis report here, it’s free for active Edge members.
• Investment Banking & Brokerage company BGC (NASDAQ: BGC) jumped 3.6%. Is now the time to buy BGC? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Evercore (EVR)

Evercore’s shares are somewhat volatile and have had 14 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 9 days ago when the stock gained 3% on the news that investors continued to pile into value-oriented names amid growing valuation concerns. 

This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced. Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over. The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.

Evercore is up 11% since the beginning of the year, but at $306.59 per share, it is still trading 15.5% below its 52-week high of $362.79 from September 2025. Investors who bought $1,000 worth of Evercore’s shares 5 years ago would now be looking at an investment worth $3,359.

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