Sarepta, Palantir, Moderna lead Wall Street declines as biotech, tech stocks tumble

U.S. stock indices closed lower on May 6, 2025, as investor sentiment turned broadly risk-averse amid caution ahead of the Federal Reserve’s upcoming policy announcement. The S&P 500 fell 0.8%, the Nasdaq Composite lost 0.9%, and the Dow Jones Industrial Average declined 0.9%. Growth stocks bore the brunt of the selloff, particularly in biotech and technology sectors, which saw intensified institutional selling and profit booking. Here’s a complete breakdown of the day’s biggest decliners on Wall Street.

Why Did Sarepta Therapeutics Stock Fall?

Sarepta Therapeutics Inc. led the U.S. stock market losers list with a sharp 26.56% plunge to $46.75. The fall followed quarterly results that, while exceeding top-line expectations, fell short on gene therapy Elevidys’ commercial traction. Compounding the bearish tone was increased regulatory uncertainty around accelerated approvals, especially following the appointment of a known FDA critic. The stock, already down over 60% for the year, drew significant short interest as funds shifted capital away from speculative biotech bets.

What Caused BellRing Brands Shares to Decline?

Shares of BellRing Brands Inc. dropped 18.97% to $63.55 after the company reported fiscal Q2 results that met revenue expectations but offered no upward guidance revision. The high valuation at 36.95 times earnings left little room for error, and investors reacted negatively to signs of stagnation in growth forecasts. With only a modest 9.42% annual gain remaining, institutions lightened their positions amid sector rotation away from consumer packaged goods.

Why Did Avidity Biosciences Stock Drop?

Avidity Biosciences Inc. saw its stock fall 18.65% to $26.26 in a session marked by high volatility. Despite no company-specific disclosures, broader biotech weakness and thin volumes triggered algorithmic selling. The lack of revenue-generating assets and speculative nature of its mRNA-based therapeutics led to heavy outflows from funds reducing biotech exposure.

What Triggered the Drop in Arcellx Shares?

Arcellx Inc. slid 18.33% to $52.80 as investors locked in gains from earlier rallies. The stock entered technically oversold levels on high volumes, indicating automated risk-reducing trades. With no near-term trial readouts expected, momentum-driven traders likely exited positions, while institutions moved cash toward de-risked assets amid macro uncertainty.

Why Did Matson Shares Tumble?

Matson Inc. dropped 15.41% to $93.11 following a sharp update revealing a 30% year-on-year collapse in Transpacific container volume. The ocean shipping firm flagged weaker demand from Asia, citing continued tariff distortions and supply chain imbalances. With a modest P/E of 7.90, value buyers are monitoring closely, but investor confidence is shaky given the broader trade slump.

What Caused Vaxcyte to Drop?

Vaxcyte Inc. fell 14.70% to $29.24 after investors reacted negatively to mixed immunogenicity results from its Phase II pneumococcal conjugate vaccine trial. With regulatory timelines now uncertain, the stock—already down 56.22% over the past 12 months—faced fresh downgrades and heavy selling by biotech-focused hedge funds.

Why Did Krystal Biotech Decline?

Krystal Biotech Inc. lost 14.06% to close at $139.47. Though the company reported year-over-year revenue growth, its Q1 earnings of $1.20 per share missed consensus by a wide margin. The shortfall prompted fears over cost escalations and a plateauing of dermatology product adoption, leading analysts to temper growth estimates.

What Led to DigitalOcean’s Selloff?

DigitalOcean Holdings Inc. declined 13.77% to $28.25 despite delivering 14% YoY revenue growth and a $38 million net profit. Analysts flagged rising competition in the small-business cloud space and mounting acquisition costs. With shares already down for the year, large-cap tech funds continued to shift capital toward more defensible AI-focused cloud players.

Why Did Summit Therapeutics Shares Drop?

Summit Therapeutics Inc. fell 13.63% to $24.20. The company reported a narrowed net loss, but as a pre-revenue biotech, the absence of commercial operations and the lack of near-term catalysts made it vulnerable during a sector-wide drawdown. Institutional sentiment remains muted until licensing or strategic partnerships materialize.

What Caused IPG Photonics’ Slide?

IPG Photonics Corporation dropped 13.02% to $54.91 as quarterly revenue fell by double digits. Executives warned of delayed orders and geopolitical risk pressuring shipments to Asia. With declining EPS and global manufacturing headwinds, analysts revised down forward guidance, and industrial ETFs trimmed their exposure accordingly.

Why Did Denali Therapeutics Fall?

Denali Therapeutics Inc. slid 12.63% to $13.97 after reporting a wider-than-expected quarterly loss of $133 million. While the company completed a key BLA submission for its Hunter Syndrome drug, sentiment remained cautious due to pipeline concentration risks and an increasing cash burn rate. Several growth funds trimmed holdings due to weak revenue visibility.

What Triggered Moderna’s Decline?

Moderna Inc. declined 12.25% to $24.43, dragged lower by a Q1 net loss of $1.0 billion and shrinking COVID-19 product revenues. Regulatory headwinds surrounding vaccine oversight contributed to the negative tone. With pandemic tailwinds fading and new programs still in early stages, buy-side analysts are reassessing valuation multiples across the mRNA space.

Why Did Palantir Technologies Slide?

Palantir Technologies Inc. fell 12.05% to $108.86. Despite raising guidance, the company’s international commercial revenue growth missed investor expectations. Following a 400% rally in 12 months, the high P/E ratio of 680.38 left little cushion for disappointment. Quant funds and hedge funds were seen exiting positions, citing valuation risk in an interest-rate-sensitive environment.

What Drove J&J Snack Foods Lower?

J&J Snack Foods Corp. dropped 11.94% to $116.10 after posting disappointing revenue of $356.1 million, well below consensus. The decline in its flagship churro and pretzel lines raised questions about pricing elasticity in the current inflationary landscape. With high operating costs pressuring margins, consumer staples ETFs rebalanced away from the name.

Why Did CRISPR Therapeutics Fall?

CRISPR Therapeutics AG shed 11.86% to $33.16 after reporting a quarterly EPS loss of $1.58, significantly wider than the expected $1.27. Despite its high-profile gene editing platform, the firm lacks commercial revenue, and investor confidence was shaken by the magnitude of operating losses. Analysts remain cautious until regulatory clarity on its lead assets is achieved.

What Caused PTC Therapeutics to Slide?

PTC Therapeutics Inc. declined 10.97% to $36.19. The lack of positive trial updates and a cautious pipeline tone in the earnings call led to broad-based selling. With no commercial upside projected in the near term, several sell-side desks issued neutral or downgrade ratings.

Why Did Global Business Travel Group Drop?

Global Business Travel Group Inc. lost 10.45% to $6.17 amid growing concerns about macro pressures on corporate travel recovery. Despite minor revenue growth, weak forward bookings and rising costs led institutions to rotate out of the name in favor of leisure travel leaders with stronger cash positions.

What Drove Vertex Pharmaceuticals Lower?

Vertex Pharmaceuticals Incorporated fell 10.03% to $450.03 following underwhelming Q1 earnings. Investors were particularly concerned with delayed market access for its pain treatment candidate, which had been seen as a key future growth driver. At a market cap of over $128 billion, the drop erased nearly $13 billion in value in a single day.

Why Did Scholar Rock Shares Fall?

Scholar Rock Holding Corporation dropped 10.01% to $29.31. Despite recent progress in pipeline expansion, broader biotech volatility and a lack of imminent readouts made the name susceptible to sell-side de-risking. Funds continue to reduce exposure to early-stage therapeutic platforms.

What Caused Ultragenyx Pharmaceutical’s Losses?

Ultragenyx Pharmaceutical Inc. fell 9.80% to $35.06 amid concerns over slow adoption of its rare disease treatments. Despite past label expansions, analysts pointed to muted physician uptake and increasing payer pushback. The company’s long-term value remains tied to its pipeline, but near-term sentiment is cautious.

Why Did CCC Intelligent Solutions Stock Drop?

CCC Intelligent Solutions Holdings Inc. declined 9.74% to $8.30, hurt by its extremely high P/E ratio of 829.50. As macro headwinds weigh on the auto insurance and repair ecosystem, investors are becoming wary of names that lack pricing power or face platform commoditization.

What Caused Apogee Therapeutics to Decline?

Apogee Therapeutics Inc. fell 9.70% to $35.57. Investors pulled capital from the speculative biotech segment broadly, and the absence of meaningful trial data this quarter made it difficult for the stock to attract support in a falling market.

Why Did Nuvalent Slide?

Nuvalent Inc. declined 9.60% to $68.19. Despite a modest year-to-date gain, shares were weighed down by elevated expectations heading into its next trial update. The valuation remains stretched relative to near-term cash flow visibility, prompting analysts to advise caution.

What Drove Crinetics Pharmaceuticals Down?

Crinetics Pharmaceuticals Inc. closed down 9.30% at $30.52. The company is developing treatments for endocrine disorders, but with no imminent catalysts and ongoing R&D expenses, institutional interest remains limited. Market participants rotated toward names with approved assets or revenue-generating models.

What Caused Lattice Semiconductor to Decline?

Lattice Semiconductor Corporation fell 9.28% to $47.59, capping off a tech-sector-wide retreat. Despite strong positioning in low-power FPGAs, investors were spooked by signs of slowing demand in the industrial automation segment. The high forward P/E of 128.62 triggered valuation concerns amid rate hike fears.