What Happened?

A number of stocks fell in the afternoon session after a weaker-than-expected August jobs report heightened concerns about the health of the U.S. economy. 

The U.S. economy added only 22,000 jobs last month, significantly missing economists' expectations of 75,000, while the unemployment rate ticked up to 4.3%. While this dismal report reinforced investor bets that the Federal Reserve will cut its benchmark interest rate at its next meeting to stimulate the economy, the optimism was short-lived. The sharp and unexpected cooling of the labor market triggered fears of a more pronounced economic slowdown, with some investors worried the Fed may now be acting too late to prevent further weakness. This concern overshadowed the prospect of policy easing, leading to a flight to the safety of government bonds and pushing Treasury yields to their lowest levels in five months.

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:

• Regional Banks company Customers Bancorp (NYSE: CUBI) fell 3.3%. Is now the time to buy Customers Bancorp? Access our full analysis report here, it’s free.
• Diversified Banks company JPMorgan Chase (NYSE: JPM) fell 3%. Is now the time to buy JPMorgan Chase? Access our full analysis report here, it’s free.
• Regional Banks company First Citizens BancShares (NASDAQ: FCNCA) fell 4.1%. Is now the time to buy First Citizens BancShares? Access our full analysis report here, it’s free.
• Regional Banks company Coastal Financial (NASDAQ: CCB) fell 4.1%. Is now the time to buy Coastal Financial? Access our full analysis report here, it’s free.
• Regional Banks company Zions Bancorporation (NASDAQ: ZION) fell 2.9%. Is now the time to buy Zions Bancorporation? Access our full analysis report here, it’s free.

Zooming In On Coastal Financial (CCB)

Coastal Financial’s shares are quite volatile and have had 18 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 14 days ago when the stock gained 5% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

Coastal Financial is up 30.6% since the beginning of the year, and at $110.66 per share, it is trading close to its 52-week high of $115.88 from September 2025. Investors who bought $1,000 worth of Coastal Financial’s shares 5 years ago would now be looking at an investment worth $7,990.

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