Why Interactive Brokers Group, Inc. (IBKR) Declined on Wednesday

The stock market fell sharply anew on Wednesday, with all major indices ending in the red, as investor sentiment was dampened by Federal Chairman Jerome Powell’s bearish comments on the US economy, saying that the US’ tariff policies could drive up inflation and “move us further away from our goals.”

The tech-heavy Nasdaq dropped the hardest, down 3.07 percent. The S&P 500 declined by 2.24 percent, and the Dow Jones was down by 1.73 percent.

To come up with the list of the stocks that declined on Wednesday, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

A skilled senior trader executing an order in a fast paced trading environment.

Interactive Brokers Group, Inc. (NASDAQ:IBKR)

Interactive Brokers Group, Inc. (NASDAQ:IBKR) fell by 8.95 percent on Wednesday to end at $157.90 apiece as investors sold off positions on expectations of muted trading activity.

This came after Federal Reserve Chairman Jerome Powell warned on Wednesday of the impact of President Donald Trump’s tariff policies on the US economy, saying that it could inflict lasting economic damage.

“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell said.

The news was particularly relevant for Interactive Brokers Group, Inc. (NASDAQ:IBKR) on expectations that the tariffs’ economic impact could slow down market trading activities.

Additionally, Interactive Brokers Group, Inc. (NASDAQ:IBKR) announced adjusted earnings per share of $1.88, missing analyst estimates. However, its net income expanded by 14.6 percent on a year-on-year basis.

Overall IBKR ranks 3rd on our list of the stocks that declined on Wednesday. While we acknowledge the potential of IBKR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBKR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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