Nasdaq rallies on Trump tariff optimism, but over 20 stocks tumble as energy, EV, HVAC, and gold miners face sharp pullback

Despite broad market optimism on April 23, 2025—triggered by President Donald Trump’s surprise statement suggesting a possible rollback of China tariffs and his support for Federal Reserve leadership—investor enthusiasm failed to lift all boats. Over 20 stocks saw steep declines, even as major indices like the Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 posted solid gains. The selloff cut across clean energy, autonomous tech, rare earths, defence, and gold mining, indicating sector-specific pressure points are still deeply embedded beneath Wall Street’s surface-level rebound.

What caused WeRide and Enphase to lead the market’s biggest declines?

WeRide Inc. suffered the sharpest drop on the day, plunging 16.95% to $7.30. The autonomous vehicle technology firm, once considered a promising player in AI mobility, has seen market sentiment deteriorate significantly due to investor wariness toward pre-revenue tech ventures. A nearly 47% year-on-year stock price erosion underscores growing market scepticism over the scalability of unprofitable electric and autonomous vehicle platforms in a capital-restricted environment.

Enphase Energy Inc., meanwhile, fell 15.65% to $45.07. The decline marked a continuation of its downward trajectory, with investors increasingly concerned about slowing rooftop solar installations in the U.S., particularly as federal and state incentives plateau. Rising production costs and a more competitive European solar market have further pressured Enphase’s margins. With its share price down more than 50% from 52-week highs, the company is now among the hardest-hit in the renewables segment.

Why are industrials like Watsco and Lennox losing investor confidence?

Watsco Inc. saw its shares dive 11.28% to $446.40, driven by concerns over earnings growth and operational leverage. As the largest distributor of heating and cooling products in North America, the firm is exposed to fluctuations in residential construction and commercial real estate cycles. Rising logistics costs and uncertain Q2 guidance have added to investor caution.

Lennox International Inc., another major HVAC player, slid 8.98% to close at $508.76. The company has benefited from infrastructure spending and home retrofits, but signs of softening commercial HVAC demand and tight labour conditions have dented its near-term outlook. Despite a strong year-to-date gain, Wednesday’s correction signals market unease about the sector’s earnings durability.

Otis Worldwide Corporation was down 6.72% to $92.30 amid investor concerns about its exposure to the Chinese property sector, where elevator demand has weakened due to sluggish real estate completions and tighter developer liquidity.

What’s dragging down rare earths and defence stocks?

Lynas Rare Earths Limited, listed under LYSDY and LYSCF, fell 8.79% and 8.35%, respectively. Despite strong long-term demand for rare earth elements in electric vehicles and military systems, a sudden fall in neodymium-praseodymium prices—key magnets used in motors—sparked a sector-wide retreat. Recent export data from China signalled a temporary oversupply, further undermining sentiment.

Defence manufacturers like Saab AB (-5.48%) and Rheinmetall AG (-5.14%) were not spared. Despite high geopolitical tension and robust defence spending in NATO countries, some investors appear to be rotating out of high-beta stocks following their strong run. Valuations in the defence sector, particularly for European stocks, are beginning to look stretched in the context of slower contract finalisations.

Why did gold miners tumble even as market risk appetite grew?

Gold stocks dominated the red column on April 23, reversing their recent bullish trend. A combination of stronger-than-expected US economic data and firmer Treasury yields pushed gold prices sharply lower, prompting profit-taking across the mining complex.

Weatherford International plc fell 7.18%, AngloGold Ashanti plc slipped 5.96%, and Harmony Gold Mining Company lost 5.76%. Meanwhile, IAMGOLD Corporation (-5.50%), Gold Fields Limited (-5.09%), and Barrick Gold Corporation (-4.56%) also dropped significantly. The sector had enjoyed inflows amid geopolitical risk and rate cut speculation, but traders are now scaling back exposure as interest rate expectations shift toward a higher-for-longer trajectory.

Endeavour Mining plc declined 6.28%, further amplifying the trend. Even Anglo American Platinum Limited, a major platinum miner, lost 4.21% despite robust demand from the clean mobility sector.

Are consumer and retail stocks losing steam?

Shimano Inc. plunged 10.89% to $12.93, continuing its fall from pandemic-era highs as demand for cycling components cools and Asia-Pacific growth remains tepid. Analysts have flagged increasing competition and rising operational costs as threats to its margins.

Reckitt Benckiser Group plc, down 6.34%, was impacted by concerns over its health and nutrition segment, particularly its underperformance in the U.S. infant formula business. Analysts cited high inventory levels and promotional pricing strategies as near-term risks.

Marks and Spencer Group plc also fell 4.11%. Though it has outperformed in the UK retail rebound, inflationary pressure on consumer wallets in Europe and cautious retail spending forecasts weighed on sentiment.

What’s behind the losses in transportation, data, and auto retail?

GATX Corporation slipped 4.38% to $141.98. The railcar lessor has faced declining leasing rates and softer North American freight traffic. Investors have begun to price in a demand plateau following two strong years of growth.

Sportradar Group AG fell 7.69% as investors took profits following its impressive 161% annual gain. The sports data analytics firm, which supports sports betting operations globally, is now facing competition from newer entrants and regulatory uncertainty in emerging markets.

Lithia Motors, Inc. closed down 5.81% to $278.29. High interest rates are slowing new and used vehicle purchases, and the dealer chain’s same-store sales momentum is weakening. Analysts believe that auto retail stocks are in a valuation reset phase after the pandemic boom.

What signals are energy and utilities sending?

Baker Hughes Company declined 6.44% and E.ON SE lost 4.81%. While oil service providers are still benefiting from global upstream spending, concerns about margin compression and capex intensity are back in focus. The energy sector saw profit-booking after crude oil futures dipped and European natural gas prices showed volatility.

Weatherford International’s steep fall also added to bearish sentiment in energy services, reflecting market caution about global drilling volumes in Q2.

Broader market sentiment: Rotation or recalibration?

While Wall Street’s Wednesday rally was supported by macro-level relief—from cooling inflation fears to geopolitical thaw—investors were selective. The stocks punished the most were often those that had seen steep year-to-date gains or were priced for perfection despite macro uncertainty.

From autonomous driving to solar, rare earths to gold mining, many of these sectors remain vulnerable to input volatility, policy risk, and interest rate sensitivity. Institutional flows suggest that large funds are rotating capital into megacap AI and cloud infrastructure stocks, potentially leaving niche plays exposed.