10 Stocks Nosedive, Defying Broader Optimism

Ten companies—predominantly Bitcoin miners—kicked off this week’s trading on a sour note, bucking an overall market optimism, following the lack of fresh developments to spark buying appetite.

On Tuesday, the Dow Jones rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.

In this article we will look at Tuesday’s worst performers and explore the reasons behind their drop.

To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

Stock market data. Photo by Alesia Kozik

10. Astera Labs Inc. (NASDAQ:ALAB)

Astera Labs (ALAB) saw its share prices drop by 6.67 percent on Tuesday to close at $124.41 apiece as investor sentiment was dampened after earning a rating downgrade from investment bank Morgan Stanley.

According to Morgan Stanley, it downgraded its outlook for Astera Labs to “equalweight” from “overweight” previously, while also setting a price target of $142 for its share price.

The company noted that Astera Labs’ current valuation appears to already reflect market optimism surrounding its new PCIe switch products, which are designed to support AI infrastructure. The investment bank added that while they remain optimistic about the company’s growth potential driven by the AI boom, they see no immediate catalyst to justify a re-rating at this time.

9. Lucid Group Inc. (NASDAQ:LCID)

Lucid Group’s (LCID) shares fell for a second day on Tuesday as investors sold off positions following President Donald Trump’s national energy emergency and that he would remove the electric vehicle (EV) mandate put in place by the Biden administration.

The mandate would have required 67 percent of new vehicles and 32 percent of medium vehicles produced in the US to be all electric by 2032.

Lucid Group (LCID), a luxury EV maker, dropped its share prices alongside Tesla Inc., which dipped by 0.57 percent.

With the implementation of the new Trump administration policy, US energy policy is expected to shift toward a less supportive stance on the EV industry. Alongside the removal of the EV mandate, there are strong indications that the administration will also phase out federal subsidies and tax rebates currently offered to consumers purchasing electric vehicles.