Ten companies kicked off this week’s trading with significant losses, mirroring a wider market pessimism over growing trade tensions.
The declines came following the US imposition of additional tariffs on goods from Canada, Mexico, and China, and signals of potential retaliation of taxes on US goods.
On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.
In this article, let us explore the companies that were hit the hardest on Monday, and look at the specific factors that drove down their losses.
Our list of Monday’s top losers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.
A stock market graph. Photo by energepic.com on Pexels
10. Super Micro Computer Inc. (NASDAQ:SMCI)
Information Technology company Super Micro Computer dropped its share prices by 5.86 percent on Monday to finish at $26.85 apiece as investors sold off positions before the release of the company’s earnings performance after the market closed on the same day.
According to Nasdaq, Wall Street analysts were expecting Super Micro Computer to book a staggering 48 percent in earnings growth, as well as revenues of $6 billion and earnings per share of 66 cents apiece.
Operating at the forefront of AI and high-performance computing, Super Micro is strategically positioned to capitalize on emerging opportunities in a market that is rapidly gaining momentum.
Just recently, the company resolved concerns over alleged misconduct in its accounting practices, confirming that an investigation found no evidence of wrongdoing. However, it announced plans to replace its Chief Financial Officer as a precautionary measure.
9. PDD Holdings Inc. (NASDAQ:PDD)
Shares of Temu parent PDD Holdings extended a losing streak for the second day on Monday, losing 5.96 percent to close at $105.24 apiece as investor sentiment was dampened by the US imposition of a hefty tariff rate on Chinese goods.
On Saturday, President Donald Trump officially signed the imposition of an additional 10 percent tariffs on Chinese goods, as well as 25 percent on imports from neighboring countries Canada and Mexico.
The development closes a loophole that Chinese online retailers such as Temu and Shein have been using to avoid US taxes. Called the “de minimis” exemption, or a Latin term that means “too small to matter,” the loopholes let packages worth less than $800 be brought to the US without any customs fees.
It has become a big advantage for companies like Temu and Shein, as it helped them sell products like clothes, furniture, electronics, and home decor at very low prices as they try to expand in the US.
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