Why SoFi Technologies Inc. (SOFI) Went Down On Thursday?

We recently published a list of 10 Firms Mirror Wall Street Slump on Thursday. In this article, we are going to take a look at where SoFi Technologies Inc. (NASDAQ:SOFI) stands against other firms that mirrored Wall Street slump on Thursday.

Wall Street’s shares traded lower anew on Thursday, as investor sentiment continued to be dampened by President Donald Trump’s fresh tariffs on US imports.

The tech-heavy Nasdaq fell the heaviest, down 0.53 percent, followed by the Dow Jones at 0.37 percent, and the S&P 500 at 0.33 percent.

The market decline was mainly weighed down by the performance of car manufacturers after Trump announced a 25-percent tariff on all vehicles imported beginning April 2.

Ten companies mirrored the broader market decline. In this article, we listed Thursday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.

A professional banker shaking hands with an entrepreneur in a boardroom setting.

SoFi Technologies Inc. (NASDAQ:SOFI)

SoFi Technologies dropped its share prices for a third straight day on Thursday as investors moved away from riskier stocks amid dampened consumer spending.

SOFI, a financial services technology firm, offers a wide range of products and services including credit cards, loans, and insurance, among others. With the ongoing economic uncertainties including the trade war and the path of the US economy, SOFI could potentially bear the brunt of lower demand for its products and services.

On Wednesday, the Conference Board reported that US consumer spending fell sharply to a new low as investors turned increasingly anxious about President Donald Trump’s trade war with other countries.

Further adding to the already dampened sentiment was the Federal Reserve’s comments that they are uncertain about where the economy is going next.

“Uncertainty is remarkably high,” Fed Chairman Jerome Powell said of the US economic outlook.

Overall, SOFI ranks 10th on our list of firms that mirrored Wall Street slump on Thursday. While we acknowledge the potential of SOFI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SOFI but trades at less than 5 times its earnings, check out our report about the 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.