Why Ironwood Pharmaceuticals Inc. (IRWD) Went Down On Thursday?

We recently published a list of 10 Stocks Fall Behind Amid Market Optimism. In this article, we are going to take a look at where Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) stands against other stocks that fall behind amid market optimism.

Wall Street’s main indices rebounded from hefty losses on Wednesday after President Donald Trump announced that the US will pause the imposition of higher tariffs on 75 countries for 90 days.

In a post on Truth Social, Trump said that more than 75 countries have called to negotiate and have not retaliated in any way.

“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he noted.

Following the announcement, the Dow Jones jumped by 7.87 percent, the S&P 500 surged by 9.52 percent, and the tech-heavy Nasdaq soared by 12.16 percent.

Despite the overall market optimism, 10 companies, predominantly in the biopharmaceutical sector, registered losses amid the lack of fresh developments to spark buying appetite.

In this article, we listed Wednesday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with over $1 million in trading volume.

A medical laboratory surrounded by advanced equipment, symbolizing the company’s cutting-edge innovation in healthcare.

Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD)

Ironwood saw its share prices drop for a fifth straight day on Wednesday, losing 7.21 percent to close at $1.03 apiece as investors sold off positions amid the lack of fresh catalysts to boost investing appetite and shifted funds to higher-yielding stocks.

In an overly optimistic market environment on Wednesday, the continued drop in its share prices signaled investor pessimism in the company.

Sentiment was further dampened after Nasdaq late last month sent the company a notification letter for its delayed filing of the 2024 Annual Report, and IRWD’s uncertain target date of filing.

“Under Nasdaq rules, the Company has 60 calendar days from the date of the Notice, or until May 20, 2025, to submit to Nasdaq a plan to regain compliance with the Rule. The Company plans to file its 2024 Form 10-K as soon as practicable and thereby expects to regain compliance with the Rule,” the company said.

Overall, IRWD ranks 10th on our list of stocks that fall behind amid market optimism. While we acknowledge the potential of IRWD 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 IRWD 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.

Disclosure: None. This article is originally published at Insider Monkey.