Why U.S. Steel’s (X) Shares Are Falling

We recently published a list of 10 Firms Buck Broader Market Optimism. In this article, we are going to take a look at where United States Steel Corporation (NYSE:X) stands against other firms buck broader market optimism.

Wall Street’s main indices finished in the green territory on Friday amid a series of catalysts buoying investor appetite.

The Dow Jones Industrial Average rose by 0.80 percent, while the S&P 500 and Nasdaq Composite rallied by 1.26 percent and 1.77 percent, respectively.

Despite the wider optimistic sentiment, 10 companies managed to post declines. Here is why:

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

A conveyor belt winding its way through a steel production facility.

United States Steel Corporation (NYSE:X)

News of outgoing president Joe Biden blocking Japanese firm Nippon Steel from acquiring United States Steel Corporation (NYSE:X) sent the latter’s stock price tumbling by 6.53 percent on Friday to end at $30.47 apiece.

In a statement, Biden said: “As I have said many times, steel production – and the steelworkers who produce it – are the backbone of our nation. A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains.”

The move did not come as a surprise as Biden has long announced that he was against the deal. However, experts feared that the recent decision could have implications for future foreign investments in American firms.

Incoming president Donald Trump also signaled opposing the acquisition and that he would also block it once he takes office.

Overall, X ranks 4th on our list of firms buck broader market optimism. While we acknowledge the potential of X 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. If you are looking for an AI stock that is more promising than X but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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