Top U.S. stock losers: Wix, VF Corp, FICO lead broad-based market selloff amid yield surge and policy jitters

Why Did U.S. Stocks Fall Sharply on May 21, 2025?

U.S. equity markets witnessed a sharp sell-off on May 21, 2025, as renewed fiscal policy anxieties and bond market volatility triggered steep declines across technology, healthcare, energy, and retail sectors. The S&P 500 slid 1.61%, the Nasdaq Composite fell 1.41%, and the Dow Jones Industrial Average lost 1.91%. The catalyst was a weak auction for 20-year Treasury bonds, which spooked investors as the 10-year yield rose to 4.589% and the 30-year yield surpassed 5.089%. Analysts attributed the poor auction response to fears around President Donald Trump’s proposed multi-trillion-dollar tax cut bill, which could worsen fiscal imbalances and pressure U.S. sovereign credit outlooks.

Institutional sentiment turned defensive, with rotation out of high-growth names and interest-rate sensitive assets. Sell-side desks also flagged heavier-than-usual block trades and ETF rebalancing among mid-cap and speculative names, deepening the day’s downward momentum. Below is the full breakdown of the worst-performing stocks on the day.

Wix.com Ltd. (NASDAQ: WIX) – Down 16.18%

Wix.com was the top loser, falling 16.18% to $152.34 after disappointing forward guidance suggested slowing subscriber growth. Investors rotated out of SaaS names with stretched valuations, despite Wix’s profitable business model. Trading volume surged to 4.6 million, more than five times its three-month average, as institutions appeared to reduce exposure ahead of Q2 macro headwinds. The stock is now down nearly 8% on a 52-week basis.

V.F. Corporation (NYSE: VFC) – Down 15.80%

VF Corporation fell to $12.15, marking a 15.80% drop, as the apparel conglomerate faced investor backlash following weak foot traffic trends and restructuring inefficiencies. With a market cap slipping below $5 billion, concerns over balance sheet flexibility and turnaround timelines in brands like Vans and Timberland intensified. Trading volumes soared to over 23.8 million, more than double the three-month average, suggesting heavy institutional de-risking.

Fair Isaac Corporation (NYSE: FICO) – Down 15.74%

FICO shares plunged 15.74% to $1,707.94 after broader market pressure on financial analytics firms tied to consumer credit weakened sentiment. Despite strong long-term fundamentals, the stock’s high P/E ratio of 73.5 made it vulnerable. Sell-side analysts pointed to concerns over consumer delinquencies and credit tightening, with nearly 1 million shares changing hands — far above normal levels.

Garrett Motion Inc. (NASDAQ: GTX) – Down 13.03%

Garrett Motion lost 13.03%, closing at $10.35. The automotive supplier faced downgrades from hedge funds citing slower-than-expected OEM orders from European clients. While the company’s fundamentals remain intact, aggressive deleveraging appears to have triggered technical selling.

Modine Manufacturing Company (NYSE: MOD) – Down 11.66%

Modine dropped 11.66% to $93.26 amid valuation concerns and uncertainty around its HVAC demand outlook. Despite strong YTD performance, the drop reflects rotation away from cyclical industrials. Volume was significantly elevated, implying institutional rebalancing out of mid-cap manufacturing stocks.

The AES Corporation (NYSE: AES) – Down 9.88%

AES tumbled nearly 10% to $10.13 as investors fled interest-rate sensitive utility names. With yields rising, discounted cash flows for long-duration renewable energy projects took a hit. The stock is now down over 50% year-on-year, as concerns over refinancing and tariff pressures mount.

Oscar Health, Inc. (NYSE: OSCR) – Down 9.78%

Oscar Health slid 9.78% to $14.86. The digital-first insurer is facing growing pressure from regulators over plan pricing, while its profitability path remains unclear. Short interest has risen notably in recent weeks, with options activity suggesting expectations of continued downside.

Newmark Group, Inc. (NASDAQ: NMRK) – Down 9.75%

Newmark fell to $10.28, down 9.75%, on fears of a worsening U.S. commercial real estate correction. Office leasing trends remain dismal, and investment sales volumes are drying up. The stock’s weakness reflects long-term sector stress, as institutions brace for CRE writedowns.

Reddit Inc. (NYSE: RDDT) – Down 9.27%

Reddit shares dropped 9.27% to $95.85 as retail investor enthusiasm cooled and traders booked profits following a 76% year-to-date gain. Analysts expressed concern over user monetization metrics, while short-term valuation multiples remain steep.

TransUnion (NYSE: TRU) – Down 8.81%

TransUnion closed at $82.43 after losing 8.81%, with credit bureau peers also under pressure. Loan origination volumes are trending downward, impacting demand for credit data products. Rising defaults in auto and personal loans have further heightened risk.

Lemonade, Inc. (NYSE: LMND) – Down 8.44%

Lemonade dipped 8.44% to $29.09, despite a strong one-year return of over 80%. Concerns over underwriting profitability, combined with a macro backdrop unfavourable for new customer acquisition, weighed on sentiment. Analysts flagged that higher reinsurance costs could also affect margins.

Rigetti Computing, Inc. (NASDAQ: RGTI) – Down 8.05%

Rigetti dropped 8.05% to $10.96. After a 933% rally this year, the quantum computing stock saw heavy profit-taking amid wider tech sell-offs. With no major announcements, the move appears technically driven.

Newegg Commerce, Inc. (NASDAQ: NEGG) – Down 7.90%

Newegg continued its downward spiral, falling 7.90% to $5.71. With a market cap of just $111 million and a one-year return of -72%, the e-commerce firm is struggling to retain investor interest. Declining margins and weak online traffic have hurt top-line expectations.

Moderna, Inc. (NASDAQ: MRNA) – Down 7.82%

Moderna slid 7.82% to $25.80 as vaccine demand slumps post-COVID. Its pipeline diversification efforts have failed to generate enthusiasm, and its stock has lost over 84% in the past year. Bearish sentiment dominates biotech.

Herc Holdings Inc. (NYSE: HRI) – Down 7.74%

Herc Holdings dropped to $125.20, declining 7.74%. Analysts flagged concerns over equipment utilization rates and potential delays in infrastructure funding disbursements. Rental rates are coming under pressure from increased competition.

Bio-Rad Laboratories, Inc. (NYSE: BIO) – Down 7.72%

Bio-Rad fell to $227.98, shedding 7.72% as it missed internal targets for diagnostics equipment sales. The company is also facing higher R&D costs and competitive threats in the genetic testing segment.

Regencell Bioscience Holdings Ltd. (NASDAQ: RGC) – Down 7.69%

Regencell slid 7.69% to $415.00. Despite a staggering 8,200% gain over the past year, recent volatility reflects the illiquidity of this micro-float biotech. The correction was overdue, given the speculative nature of the run-up.

Sunrun Inc. (NASDAQ: RUN) – Down 7.63%

Sunrun lost 7.63% to close at $10.66. Interest rate hikes have increased financing costs for solar installations, while state-level net metering reforms have hurt customer growth. Clean energy stocks were broadly lower.

Cogent Communications Holdings, Inc. (NASDAQ: CCOI) – Down 7.61%

Cogent fell to $46.05, down 7.61%, as analysts trimmed forward EBITDA estimates. The telecom firm is dealing with churn in its enterprise customer base, while capex pressures are compressing margins.

Lattice Semiconductor Corp. (NASDAQ: LSCC) – Down 7.59%

Lattice declined to $46.54 as chip stocks corrected further. Inventory adjustments across supply chains and weakening consumer electronics demand remain headwinds. The 52-week loss now stands at over 37%.

Phillips 66 (NYSE: PSX) – Down 7.54%

Phillips 66 dropped 7.54% to $111.78. Downstream refiners are grappling with falling crack spreads, and energy analysts flagged high U.S. gasoline inventories ahead of Memorial Day. This could signal weaker summer demand.

D-Wave Quantum Inc. (NYSE: QBTS) – Down 7.25%

D-Wave slipped to $15.36, ending 7.25% lower. Despite a 1,212% YTD gain, quantum computing names remain volatile, and no new contracts or pilot deployments were announced. Retail enthusiasm appears to be fading.

American Eagle Outfitters, Inc. (NYSE: AEO) – Down 7.24%

American Eagle fell to $10.64. With same-store sales missing estimates and promotional activity rising, margins are compressing. The stock is down 54% in the past year as the apparel sector struggles.

Guardant Health, Inc. (NASDAQ: GH) – Down 7.21%

Guardant Health fell to $37.09. Despite strong long-term potential in liquid biopsy, delays in test adoption and competition from Illumina and Roche are causing revenue volatility.

Vaxcyte, Inc. (NASDAQ: PCVX) – Down 7.11%

Vaxcyte closed at $33.97, falling 7.11%. The vaccine innovator faces ongoing cash burn and slow trial progress, which has kept large-scale institutional backing at bay for now.

What’s the Broader Market Sentiment After This Sell-Off?

Wednesday’s losses were driven by macroeconomic factors rather than stock-specific catalysts. Bond market volatility, fiscal policy risk, and elevated inflation continue to drive investor behaviour. The breadth of the selloff suggests a broad-based de-risking phase, especially in speculative tech and high-duration sectors.

What Comes Next for Traders and Investors?

Institutional positioning is now increasingly cautious. Market participants await further clarity on the Trump tax plan, upcoming inflation readings, and the next Federal Reserve meeting. While oversold conditions could prompt a technical bounce, conviction remains low without clearer macro signals.