Wall Street’s main indices suffered a bloodbath on Tuesday, recording steep losses amid the looming deadline for President Donald Trump’s new round of tariffs for China that would see the latter slapped with a cumulative 104-percent import tax.
The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.
Ten companies mirrored the broader decline, recording hefty losses during the day. In this article, we listed the 10 worst-performing names and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.
Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels
10. ImmunityBio Inc. (NASDAQ:IBRX)
ImmunityBio extended its losing streak for a fourth day on Tuesday, slashing 11.03 percent to finish at $2.42 apiece as investors sold off positions to mitigate risks from the ongoing economic uncertainties.
Tuesday’s drop shunned the company’s announcement that it secured some $75 million in equity and warrants financing from a single institutional investor. If fully exercised, IBRX said it would rake in as much as $90 million.
IBRX said proceeds from the fundraising activity would be used to finance its capital needs and support its ongoing business operations.
The securities to be sold are covered by its automatic shelf registration program. A final prospectus supplement, which contains additional information relating to the offering, will be filed with the SEC and will be available on the SEC’s website.
IBRX is a vertically integrated biotechnology company developing next-generation therapies and vaccines that bolster the natural immune system to defeat cancers and infectious diseases.
9. Enphase Energy Inc. (NASDAQ:ENPH)
Enphase Energy declined for a fourth straight day on Tuesday, shedding 11.19 percent to finish at $49.52 apiece as investors sold off stock positions amid the broader market pessimism and the lack of fresh catalysts to spark buying appetite.
In last Wednesday’s episode of the Mad Money show, a caller asked host and former hedge fund manager Jim Cramer what he thought about ENPH stocks and if he should wait for a catalyst or instead sell it and buy Capital One.
In response, Cramer said: “Sell out and buy Capital One. There will be no good news in Enphase because you know why? It’s not a company that the president wants to see do well. It means nothing to him.”
In February this year, Cramer said that the residential solar stocks soared from 2020 to 2022 before demand lowered in 2023.
“It turned out that people can’t really afford residential solar systems without borrowing money. Meaning, the whole industry was actually built not on solar but on financing. And once people realized long-term interest rates would remain elevated for quite some time, the residential solar stocks, all got crushed. It’s not a coincidence, something like Enphase was roaring in 2020 and 2021 when people could borrow money for next to nothing,” he noted.
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