Inflation data boosts US stock markets: 3D Systems and Stratasys in focus

The US stock markets showed positivity in the afternoon after a key inflation measure aligned with expectations, thus fueling hopes for further interest rate cuts by the Federal Reserve. The Personal Consumption Expenditures (PCE) price index, the central bank's preferred measure of inflation, rose slightly year-over-year in August but did not surprise economists. This data was received with relief on Wall Street, as it indicates that inflation can be kept in check, allowing the Federal Reserve to continue its accommodative monetary policy. Investors viewed the news positively, as it suggests that the Fed can support the economy without risking runaway inflation. This optimistic outlook helped major indices partially recover from the losses of a recent three-day losing streak, as stocks across various sectors gained. The stock market tends to overreact to news, and sharp declines can represent good opportunities to acquire high-quality stocks. Particularly affected by this development were, among others, the shares of 3D Systems. This company's stock is highly volatile, having recorded 71 movements of more than 5% in the past year. In this context, today's price movement signals that the market considers the news significant but not game-changing. Our last report, three days ago, was about a significant price increase of 11.9% when investors reacted positively to news from the broader 3D printing and additive manufacturing industry. The positive market sentiment was also fueled by developments from other key players in this sector. For example, Stratasys, a major company in industrial 3D printing, recently opened a new North American tooling center in Michigan, aimed at providing automotive manufacturers and producers with more efficient tooling solutions. 3D Systems has experienced a decline of 2.8% since the beginning of the year and is trading at a price of $3.11 per share, 34.1% below its 52-week high of $4.72 from February 2025. Investors who purchased stocks worth $1,000 five years ago would see a value of $649.27 today. Another interesting highlight from the world of semiconductors is that companies like Nvidia and AMD are trading near their all-time highs. Nonetheless, we are focusing on a lesser-known but profitable stock in the semiconductor sector, which benefits from the rise of generative AI.