The stock market fell sharply anew on Wednesday, with all major indices ending in the red, as investor sentiment was dampened by Federal Chairman Jerome Powell’s bearish comments on the US economy, saying that the US’ tariff policies could drive up inflation and “move us further away from our goals.”
The tech-heavy Nasdaq dropped the hardest, down 3.07 percent. The S&P 500 declined by 2.24 percent, and the Dow Jones was down by 1.73 percent.
Meanwhile, ten companies mirrored a broader market pessimism. In this article, we have detailed the reasons behind their decline.
To come up with the list, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.
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10. AppLovin Corp. (NASDAQ:APP)
AppLovin Corp. pulled back by 6.38 percent on Wednesday to close at $229.81 apiece as more shareholder law firms are urging investors to join an ongoing class action lawsuit against the company.
In separate statements on Wednesday, a new set of law firms reminded APP shareholders who lost money between May 10, 2023, and February 25, 2025, about the looming deadline to lead as plaintiff for the lawsuit.
According to the lawsuit, APP reported dishonest advertising practices and misleading statements about its business, operations, and prospects concerning financial growth and stability.
The complaint was based on a short seller report on February 26 claiming that APP was reverse engineering and exploiting advertising data from Meta Platforms.
The report further alleged that APP was utilizing manipulative practices to artificially inflate their own ad click-through and app download rates, such as by having ads click on themselves or utilizing design gimmicks to trigger forced shadow downloads, erroneously inflating installation numbers and, in turn, their profit figures.
APP denied any wrongdoing and reassured investors of best practices. It said it had already hired a law firm to investigate the allegations.
9. Nvidia Corp. (NASDAQ:NVDA)
Chip giant Nvidia Corp. declined by 6.87 percent on Wednesday to close at $104.49 apiece as investors sold off positions after announcements that it would take a $5.5-billion financial beating from the US fresh restrictions on the export of its artificial intelligence chips to China.
NVDA fell by more than 10 percent at intra-day trading before buying positions pushed the company’s stock price to end slightly higher.
In a regulatory filing, NVDA said that it was told by the US government on April 9 to require a license to export H20 graphics processing units to China, Hong Kong, Macau, and D:5 countries, among others.
“The USG indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China. On April 14, 2025, the USG informed the company that the license requirement will be in effect for the indefinite future,” NVDA said.
“The company’s first quarter of fiscal year 2026 ends on April 27, 2025. First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves,” it underscored.
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