Ten stocks lost their steam on Wednesday, shedding significant losses during the session amid a flurry of company-specific developments that dampened investing appetite.
Meanwhile, only the Dow Jones finished in the red among Wall Street’s indices, down 0.48 percent. The S&P 500 and the tech-heavy Nasdaq grew 0.30 percent and 0.03 percent, respectively.
In this article, we name Wednesday’s 10 worst performers and detail the reasons behind their drop.
To come up with the list, we considered the stocks with at least $2 billion in market capitalization and 5 million shares in trading volume.
Stock market data. Photo by Jakub Zerdzicki on Pexels
10. iQIYI Inc. (NASDAQ:IQ)
Shares of iQIYI dropped by 6.81 percent on Wednesday to close at $2.6 apiece as funds shifted to artificial intelligence, while investors continued to digest trade tensions anew between the US and China.
Earlier this week, China warned the US over attempts to interfere in its issues on Taiwan and the South China Sea, saying that any move by Washington will be thwarted by Beijing. The fresh warnings weighed down on investor sentiment for Chinese companies.
Additionally, several Chinese firms staged plans to pursue secondary listing on the Hong Kong Stock Exchange (HKEX) over fears of getting delisted from the US stock markets, suggesting that concerns on the two countries’ strained relations lingered.
According to reports, iQIYI Inc. (NASDAQ:IQ) is underway with an initial public offering on the HKEX, which could raise the company up to $300 million in fresh funds. An official application is targeted to be filed by the end of the third quarter.
A report by Reuters, citing people privy to the matter, said that iQIYI, Inc. (NASDAQ:IQ) officially tapped Bank of America, JPMorgan, and China International Capital Corp. to work on its Hong Kong listing scheduled for February 2026.
9. Mobileye Global Inc. (NASDAQ:MBLY)
Mobileye ended two straight days of gains on Wednesday, shedding 6.85 percent to close at $13.88 apiece as investor sentiment was dampened by the European Union’s (EU) decision to partially pause a trade deal with Israel amid its ongoing conflict with Palestine.
On Wednesday, European Commission President Ursula von der Leyen called for the suspension of a free trade agreement with Israel, although she did not specify which products and industries would be affected.
Mobileye Global Inc. (NASDAQ:MBLY), an Israel-based firm, is particularly at risk if the automotive industry gets hit by the new trade policy, as any imposition of tariffs could weigh down on its profits and margins.
Three of Mobileye Global Inc.’s (NASDAQ:MBLY) key customers are based in Europe, including Volkswagen, BMW, and Stellantis.
In the second quarter of the year, Mobileye Global Inc. (NASDAQ:MBLY) narrowed its net loss by 22 percent to $67 million from $86 million in the same period last year. Revenues, however, grew by 15.26 percent to $506 million from $439 million year-on-year.
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