What Happened?
A number of stocks fell in the afternoon session after the 10-year Treasury yield jumped to 5.14%, reaching levels last seen in 2007 and raising borrowing costs across the economy. U.S. stocks fell early Thursday, according to the Associated Press, as surging Treasury yields and rebounding energy prices weighed on financial markets.
A Treasury yield is the return investors earn for lending money to the U.S. government. The 10-year yield is closely watched because it serves as a benchmark for many other borrowing costs, including mortgages and corporate loans. When it rises, it becomes more expensive for households and businesses to borrow, which can slow spending and investment. Higher yields can also make stocks look less attractive. When investors can earn a relatively safe return of more than 5% from government bonds, some may choose to move money out of riskier assets such as equities.
Companies that depend on borrowing to fund growth, or whose value is based heavily on expected future profits, often feel this pressure most. Rebounding energy prices added to the strain. Higher fuel costs can raise expenses for businesses and consumers and may keep inflation elevated, which could keep upward pressure on interest rates. Taken together, the jump in yields to their highest level in roughly two decades and the rise in energy prices created a difficult backdrop for stocks across the sector, with many companies moving lower together.
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:
- Energy Products and Services company Ameresco (NYSE:AMRC) fell 5.9%. Is now the time to buy Ameresco? Access our full analysis report here, it’s free.
- Engineered Components and Systems company NN (NASDAQ:NNBR) fell 6.4%. Is now the time to buy NN? Access our full analysis report here, it’s free.
- Renewable Energy company FuelCell Energy (NASDAQ:FCEL) fell 6.7%. Is now the time to buy FuelCell Energy? Access our full analysis report here, it’s free.
- Electrical Systems company Vertiv (NYSE:VRT) fell 2.6%. Is now the time to buy Vertiv? Access our full analysis report here, it’s free.
- Heavy Transportation Equipment company Blue Bird (NASDAQ:BLBD) fell 2.5%. Is now the time to buy Blue Bird? Access our full analysis report here, it’s free.
Zooming In On FuelCell Energy (FCEL)
FuelCell Energy’s shares are extremely volatile and have had 116 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 22 days ago when the stock dropped 16.9% on the news that the company reported second-quarter 2026 financial results which fell below Wall Street’s expectations for sales and earnings per share. According to a company press release, FuelCell Energy reported revenue of $33 million for the second quarter of 2026, down 29.4% from $46.7 million in the prior-year period.
The company also posted an adjusted loss of $0.64 per share, a significant miss compared to analyst expectations of -$0.39. The company said revenue fell on fewer module deliveries to customers in Korea and lower generation output, including the 7.4 MW Groton plant at the U.S. Navy submarine base, which was offline pending an upgrade. Gross loss widened because product costs and overhead exceeded contractual pricing under a Fit Energy USA LP purchase agreement, the company said, including $17.0 million of Phase 0 inventory and purchase-commitment charges at a 37.1 MW run-rate.
FuelCell Energy is up 98.9% since the beginning of the year, but at $16.25 per share, it is still trading 54.9% below its 52-week high of $36.01 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of FuelCell Energy’s shares 5 years ago would now be looking at only $77.73.
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