What Happened?

A number of stocks jumped in the afternoon session after investors rotated out of tech names to capitalize on attractive relative valuations. 

Market analysts noted that while technology remained a long-term theme, the immediate growth story was shifting toward sectors that lagged the AI-driven run-up. As high-growth tech names faced profit-taking, capital flowed into banks and asset managers viewed as offering more defensible earnings multiples in the current climate. The move reflected a classic pivot, in which traders lock in gains from volatile innovators and redeploy them into the "value" side of the market to maintain exposure while reducing risk. 

The positive mood was supported by a Goldman Sachs forecast that projected U.S. economic growth would accelerate to 2.6 percent in 2026. This outlook was based on expectations of tax cuts, easier financial conditions, and a reduced economic drag from tariffs.

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:

• Specialty Finance company Sixth Street Specialty Lending (NYSE: TSLX) jumped 3.8%. Is now the time to buy Sixth Street Specialty Lending? Access our full analysis report here, it’s free.
• Personal Loan company SoFi (NASDAQ: SOFI) jumped 2.7%. Is now the time to buy SoFi? Access our full analysis report here, it’s free.
• Diversified Financial Services company Corpay (NYSE: CPAY) jumped 3.4%. Is now the time to buy Corpay? Access our full analysis report here, it’s free.
• Payment Processing company EVERTEC (NYSE: EVTC) jumped 2.8%. Is now the time to buy EVERTEC? Access our full analysis report here, it’s free.
• Specialty Finance company Oaktree Specialty Lending (NASDAQ: OCSL) jumped 3.1%. Is now the time to buy Oaktree Specialty Lending? Access our full analysis report here, it’s free.

Zooming In On Sixth Street Specialty Lending (TSLX)

Sixth Street Specialty Lending’s shares are not very volatile and have had no moves greater than 5% over the last year.

The biggest move we wrote about over the last year was about 2 months ago when the stock gained 3.3% on the news that 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.

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