US stock market declines as Vaxcyte, Biohaven, and Moderna lead losses

The US stock market ended March 31, 2025, with widespread losses, capping off a turbulent quarter defined by economic uncertainty, policy concerns, and sector-specific headwinds. Investors saw steep declines across multiple industries, with biotechnology, technology, and financial stocks leading the downturn.

Broader market conditions have been increasingly volatile as investors digest the impact of upcoming trade tariffs under President Donald Trump’s administration. With new levies set to take effect, global trade disruptions have become a central concern, raising fears of inflationary pressures and slowing economic growth. Meanwhile, the Federal Reserve’s ongoing restrictive monetary policy has kept borrowing costs high, further dampening market sentiment.

The S&P 500 ended the first quarter of the year down 4.6%, marking its worst three-month performance since 2022. The Nasdaq Composite slipped 0.1% on Monday, dragged down by weakness in technology stocks, while the Dow Jones Industrial Average eked out a 1% gain. Despite this slight increase, investor confidence remains fragile, with equity markets facing significant headwinds in the months ahead.

Which Stocks Were the Biggest Losers?

Among the hardest-hit stocks, Vaxcyte, Inc. (PCVX) recorded the steepest decline of the day, plunging 45.64% to $37.76. The sharp selloff erased nearly half of the vaccine developer’s market value in a single session, though no major company-specific news triggered the collapse. The magnitude of the drop suggests broader investor concerns about the biotech sector rather than an isolated issue within Vaxcyte itself.

Other biotech firms also struggled. Biohaven Ltd. (BHVN) saw its shares sink 13.06% to $24.04, while Tonix Pharmaceuticals Holding Corp. (TNXP) tumbled 11.38% to $17.88. Both companies specialize in neurological and immunological drug development, sectors that have recently faced investor skepticism over regulatory challenges and commercial viability.

The downward trend continued with Apellis Pharmaceuticals, Inc. (APLS) losing 9.89%, Sarepta Therapeutics, Inc. (SRPT) sliding 9.36%, and Recursion Pharmaceuticals, Inc. (RXRX) dropping 8.95%. These companies, known for their work in rare disease treatments and artificial intelligence-driven drug discovery, have struggled to maintain investor confidence amid broader biotech market volatility.

What’s Driving the Selloff in Biotech Stocks?

The decline in biotechnology stocks follows an extended period of financial uncertainty in the sector. While biotech firms saw strong gains during the pandemic due to unprecedented demand for vaccines and therapeutics, the post-pandemic landscape has proven far more challenging. Companies like Moderna, Inc. (MRNA), which fell 8.90% to $28.35, have faced dwindling revenue from COVID-19 vaccine sales, making it harder to sustain past growth levels.

Meanwhile, CRISPR Therapeutics AG (CRSP) dropped 8.00% to $34.03, reflecting the challenges of commercializing gene-editing treatments despite promising scientific advancements. Regulatory scrutiny over drug pricing and clinical trial delays have also contributed to the downturn, as investors reassess the long-term profitability of biotech firms.

The drop in Cytokinetics, Incorporated (CYTK) by 6.95% and SpringWorks Therapeutics, Inc. (SWTX) by 6.92% highlights investor hesitation in backing companies focused on niche drug development. With rising capital costs due to higher interest rates, biotech firms reliant on external funding face increased financial pressure.

How Are Tech Stocks Responding to Economic Uncertainty?

Technology stocks were not spared from the selloff, with investor sentiment shifting due to concerns over economic policy and trade disruptions. Renesas Electronics Corporation (RNECY), a major semiconductor company, saw its shares decline 7.07% to $6.70, reflecting fears of supply chain constraints as new tariffs threaten to disrupt global chip production.

The financial technology sector also experienced a sharp downturn. Rocket Companies, Inc. (RKT) dropped 7.37% to $12.07, despite announcing a $9.4 billion stock-swap acquisition of mortgage lender Mr. Cooper. While Mr. Cooper’s shares surged 14% on the news, Rocket’s stock decline suggests that investors are wary of mortgage market consolidation at a time when high interest rates are curbing housing demand.

How Are Financial and Mining Stocks Performing?

Financial and mining stocks also faced steep losses, as concerns about global economic growth weighed on investor sentiment. Piraeus Financial Holdings S.A. (BPIRY) slid 7.04% to $5.41, while Immunovant, Inc. (IMVT) dropped 6.97% to $17.09.

Meanwhile, the commodities sector saw turbulence, with SSR Mining Inc. (SSRM) losing 7.81% to $10.03 and Ivanhoe Mines Ltd. (IVPAF) declining 7.71% to $8.50. Investors remain cautious about the long-term demand for metals, particularly amid China’s slowing economic recovery and uncertainty surrounding global trade policies.

The energy sector was not immune to the downturn, as New Fortress Energy Inc. (NFE) fell 6.10% to $8.31. The company, which focuses on liquefied natural gas (LNG) infrastructure, has faced recent headwinds as shifting energy policies raise questions about future demand and investment strategies.

What Are the Broader Market Concerns?

Market sentiment remains fragile as investors brace for potential economic shocks stemming from President Trump’s impending “Liberation Day” tariffs. Set to take effect later this week, the tariffs are expected to impact all major trading partners, heightening fears of a global trade war.

The impact of these tariffs is already being felt in key sectors. Technology companies reliant on international supply chains, such as semiconductor and software firms, have been among the hardest hit. Similarly, manufacturing and retail industries could see rising costs as import duties drive up prices for raw materials and consumer goods.

Adding to investor unease, the Federal Reserve has signaled that it will maintain higher interest rates for an extended period, prioritizing inflation control over economic growth. This has placed additional pressure on high-growth industries like biotechnology and technology, where companies often depend on debt financing to fuel expansion.

Is There a Path to Market Recovery?

Despite the sharp declines, some analysts believe the market may stabilize in the coming weeks, particularly if corporate earnings reports provide signs of resilience. Investors will be closely monitoring company guidance for insights into how businesses are adapting to the evolving economic landscape.

However, uncertainty remains a dominant theme. With inflation concerns persisting, trade policies shifting, and interest rates remaining high, the stock market is likely to experience continued volatility. The coming months will be critical in determining whether the recent selloff represents a temporary correction or the beginning of a prolonged market downturn.