Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.
The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.
Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.
To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
Note that the companies we covered in-depth last Friday have been excluded from the list.
Stock market charts. Photo by Kaboompics.com on Pexels
10. TAL Education Group (NYSE:TAL)
TAL Education declined by 7.54 percent on Monday to finish at $13.36 apiece as uncertainties surrounding the trade industry within the US and China continued to hound Chinese firms, including TAL.
Along with several Chinese counterparts, the drop came after President Donald Trump issued a memorandum on Friday encouraging foreign investments in the US while taking a swipe at China by directing the Committee on Foreign Investment in the United States (CFIUS) to impose stricter regulations on Chinese investments in key strategic sectors.
According to the memo, China is “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security.”
Under the directive, the US will establish new rules to curb “the exploitation of its capital, technology, and knowledge by foreign adversaries such as China to ensure that only those investments that serve American interests are allowed.”
The memorandum came at a time when TAL Education was actively expanding its footprint in the US.
9. Rivian Automotive Inc. (NASDAQ:RIVN)
Rivian Automotive fell for a fourth straight day on Monday, losing 7.79 percent to close at $11.96 apiece as investors sold off positions following Bank of America’s rating downgrade.
In a report, the bank said it downgraded RIVN to “underperform” from “neutral” previously and lowered its price target to $10 from $13.
According to the bank, risks are piling up for the company despite it being one of the most viable startup electric vehicle manufacturers.
During the fourth quarter of 2024, RIVN narrowed its net loss by 51 percent to $744 million from $1.521 billion in the same period a year earlier while revenues grew by 31.86 percent to $1.7 billion from $1.3 billion.
For the full year, net loss shrunk by 12.6 percent to $4.747 billion from $5.432 billion in 2023, while revenues increased by 12 percent to $4.97 billion from $4.4 billion year-on-year.
For this year, RIVN expects adjusted EBITDA loss to settle between $1.7 billion to $1.9 billion.