Red Robin, Celsius, Avis Budget Group, Hertz, and Sunrun Soar on Market Rebound: What Investors Need to Know About the Rebound and Long-Term Strategies
The stock market experienced a significant rebound in the afternoon session on Tuesday, as major indices such as the Nasdaq and S&P 500 gained 1.4% and 1.0%, respectively. The main catalyst for this rebound was the reported ceasefire between Israel and Iran, which eased concerns about potential disruptions to global oil supplies and led to a notable dip in crude oil prices.
Additionally, Federal Reserve Chair Jerome Powell's dovish signals in his Congressional testimony reaffirmed a "wait-and-see" approach on interest rates, further calming markets and improving investors' appetite for stocks and other risk assets.
Among the stocks that benefited from this positive market sentiment were Red Robin (NASDAQ:RRGB), Avis Budget Group (NASDAQ:CAR), Hertz (NASDAQ:HTZ), Sunrun (NASDAQ:RUN), and Celsius (NASDAQ:CELH). These companies saw significant jumps in their share prices, with Red Robin jumping 13.1%, Avis Budget Group jumping 14.3%, Hertz jumping 10.8%, Sunrun jumping 9.4%, and Celsius jumping 7.4%.
Avis Budget Group (CAR) in Focus
Avis Budget Group's shares have been extremely volatile over the past year, with 36 moves greater than 5%. However, even for a company with a history of significant price swings, the recent jump of 14.3% indicates that this news had a significant impact on the market's perception of the business. The previous big move we wrote about was 18 days ago when the stock gained 5.8% after the major indices rebounded, as the Bureau of Labor Statistics report revealed a resilient labor market with non-farm payrolls rising by 139,000 in May 2025, significantly above the consensus forecast of 125,000.
A stable labor market often supports consumer spending, which is a key driver of economic growth. This report could help ease some of the recession fears that have been gripping markets and supports the soft landing narrative, where the Fed can manage inflation toward its 2% target without significant damage to the economy.
Avis Budget Group is up 109% since the beginning of the year, and at $168.60 per share, has set a new 52-week high. Investors who bought $1,000 worth of Avis Budget Group's shares five years ago would now be looking at an investment worth $7,654.
In conclusion, the stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. While it's important to stay informed about the latest market developments, it's also crucial to have a long-term investment strategy that aligns with your financial goals and risk tolerance.
