Ten stocks kicked off the first trading day of June with losses, as President Donald Trump’s new round of tariffs dented investor sentiment anew.
The stocks defied a broader market optimism, with all Wall Street’s major indices finishing in the green. The tech-heavy Nasdaq grew 0.67 percent, followed by the S&P 500 with 0.41 percent, and the Dow Jones by 0.08 percent.
In this article, we name the 10 worst performers on Monday and explore the reasons behind their drop.
To come up with the list, we only focused on the companies with a $2 billion market capitalization and 5 million daily trading volume.
10. Macy’s, Inc. (NYSE:M)
Macy’s extended its losing streak to a fourth consecutive day on Monday, shedding another 4.79 percent to finish at $11.32 apiece as investors continued to dispose of shares following news that it would raise its prices across its stores to offset higher tariffs.
Although Macy’s, Inc. (NYSE:M) followed suit of other retailers that have previously guided higher prices, the possibility of lower demand for its products dampened investor sentiment.
“There are going to be items that are the same price as they were a year ago. There [are] going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn’t merit the quality or the perceived value by the consumer,” Macy’s, Inc. (NYSE:M) CEO Tony Spring said in an interview with CNBC following the company’s first quarter earnings results.
He added that the company is actively reducing its exposure to Chinese imports through renegotiating supplier contracts, as well as cancelling and delaying orders that do not meet their value criteria.
9. UWM Holdings Corp. (NYSE:UWMC)
UWM Holdings dropped its share prices by 4.88 percent on Monday to finish at $4.09 apiece, as investors repositioned portfolios to mitigate risks amid renewed global trade fears.
For the past four trading days, shares of UWM Holdings Corp. (NYSE:UWMC) saw a rally in its shares following its win against Okavage Group over its “All-In” initiative that prohibits mortgage brokers from working with competitors such as Rocket Mortgage and Fairway Independent Mortgage Corp.
The new Court decision officially ended the two firms’ four-year legal battle.
In the first quarter of the year, UWM Holdings Corp. (NYSE:UWMC) swung to a net loss of $247 million from a net income of $180 million in the same period last year, and $40 million in the fourth quarter of 2024.
Revenues, however, inched up by 4.79 percent to $613 million from $585 million year-on-year.
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