Wall Street hit by broad-based sell-off as renewable, healthcare, and tech stocks tumble

On May 22, 2025, the U.S. equity markets closed mixed but with deep declines across several sectors, as the S&P 500 and Nasdaq Composite struggled to hold gains amid a risk-off mood among investors. While broad indices remained flat, pockets of the market experienced steep losses. The day’s top decliners spanned sectors from clean energy and managed healthcare to tech hardware and coal production. Concerns over the Federal Reserve’s continued monetary tightening, fiscal uncertainty from potential tax reforms, and sector-specific headwinds weighed on sentiment.

Analysts noted an uptick in institutional block trades and risk unwinding, particularly in overvalued growth names and interest rate-sensitive equities. Short interest also rose in clean energy and biotech stocks, indicating a defensive positioning shift ahead of upcoming inflation prints and a June Fed decision.

Why Did Enphase Energy Inc. Stock Drop on May 22, 2025?

Enphase Energy Inc. plunged 19.63% to close at $38.01 on a surge in trading volume, with over 30 million shares exchanged. The solar tech firm’s sell-off stemmed from renewed uncertainty surrounding clean energy subsidies in proposed U.S. tax reforms. The P/E ratio stood at 34.87, but the stock has now fallen nearly 60% year-to-date. Market cap contracted to $4.99 billion, reflecting investor skepticism about growth amid subsidy rollback fears.

What Caused EnerSys Shares to Fall Sharply?

EnerSys dropped 14.89% to $81.28 despite posting record earnings earlier this quarter. The decline followed forward guidance that flagged rising input costs and slowing industrial battery demand. With a P/E of just 10.08 and market cap of $3.21 billion, the stock may now be entering value territory, though institutional flows turned net negative on the day.

Why Did Manchester United plc Stock Decline?

Manchester United plc slid 8.60% to $13.29 following the club’s loss in a crucial European fixture. The result jeopardized UEFA Champions League qualification, potentially affecting broadcasting and sponsorship revenues. Volume spiked to nearly 922,000 shares against an average of 265,000, suggesting speculative exits. The stock now trades nearly 12% lower year-to-date.

What Dragged Down XPeng Inc. Stock?

XPeng Inc. declined 7.87% to $20.50 despite having delivered robust sales in the first quarter. The drop reflected profit-taking after a rally earlier this year and broader weakness in EV stocks, triggered by China’s softening macro indicators. The firm remains heavily shorted, with U.S. institutional flows also rotating into legacy automakers.

Why Did Hims & Hers Health Stock Fall?

Hims & Hers Health Inc. fell 7.72% to $53.52. The telehealth brand has delivered impressive revenue growth but is now seeing margin compression and a valuation reset. With a high P/E of 78.71 and market cap of $11.98 billion, institutional investors trimmed exposure following a parabolic rise over the past six months.

Why Did Humana Inc. Share Price Sink?

Humana Inc. dropped 7.58% to $227.14 amid mounting investor concerns over new Medicare audits and policy risk. The managed care giant has seen its shares fall over 30% this year, pressured by margin erosion and reimbursement uncertainties. Its $27.41 billion market cap could shrink further if regulatory headwinds intensify.

What Caused Tonix Pharmaceuticals to Tumble?

Tonix Pharmaceuticals fell 6.81% to $26.40 as biotech sentiment deteriorated. Despite a tiny P/E of 0.07, the company faces challenges commercializing its pipeline, and speculative capital appears to be rotating out of high-volatility healthcare names. Trading volumes more than doubled compared to the 3-month average.

Why Did Warrior Met Coal Stock Fall?

Shares of Warrior Met Coal dropped 6.57% to $44.81. The metallurgical coal miner suffered as commodity prices softened and demand from Asian steelmakers slowed. A market cap of $2.36 billion and P/E of 22.41 remain modest, but global slowdown fears are dampening investor enthusiasm for cyclicals.

Why Was Full Truck Alliance Among the Day’s Worst Performers?

Full Truck Alliance lost 6.47% to end at $11.14 as regulatory overhang in China and profit-margin concerns weighed on the logistics platform. Trading volume surged past 14 million shares. Its P/E of 26.52 suggests room for correction if earnings don’t catch up to valuation.

What Pulled Down NextEra Energy Shares?

NextEra Energy fell 6.43% to $66.94 on heavy institutional outflows. The $137.8 billion utility giant is vulnerable to interest rate hikes given its yield-sensitive investor base. Concerns about tax credit changes for renewable infrastructure also pressured sentiment, dragging its preferred share NEE-PR down 5.99% as well.

Why Did Primoris Services Corporation Decline?

Primoris Services Corporation slipped 6.42% to $69.72 despite strong earnings momentum. The infrastructure engineering firm may have been caught in a broader construction and utilities rotation amid concerns about delayed federal spending and budget ceilings. P/E was 18.49, market cap at $3.77 billion.

Why Did Stevanato Group Stock Slide?

Stevanato Group S.p.A. dropped 5.75% to $22.61. The biopharma packaging company’s valuation of 43.48 times earnings raised red flags in a day of de-risking. Institutional investors appeared to rotate into lower-multiple industrial and materials names.

What Caused Enlight Renewable Energy to Retreat?

Enlight Renewable Energy declined 5.74% to $17.15. Like other renewables, it was impacted by fears over fiscal changes to clean energy incentives. Despite being up over 5% for the year, its high capital intensity model left it exposed to financing cost concerns.

Why Did Texas Pacific Land Stock Fall?

Texas Pacific Land Corporation slumped 5.66% to $1,278.90. The energy royalty firm suffered as oil prices retreated and yield-focused investors turned defensive. Its P/E of 64.17 reflects high growth expectations that may now be under revision.

What Caused HASI to Drop?

HA Sustainable Infrastructure Capital (HASI) declined 5.53% to $25.43. The firm, known for its sustainable project finance business, is vulnerable to interest rate hikes and legislative volatility affecting the green energy sector. Shares have lost over 16% this year.

Why Did Alignment Healthcare Fall?

Alignment Healthcare lost 5.48% to $14.49 amid a broader sell-off in Medicare-related providers. With no listed P/E and a $2.87 billion market cap, investors remain cautious about profitability and policy overhangs.

Why Was GDS Holdings Down?

GDS Holdings fell 5.03% to $28.16. Despite a near 280% gain over 52 weeks, profit-taking and fears over Chinese regulatory tightening spooked U.S. investors. Its P/E remains an extremely high 281.60.

What Drove Down AES Corporation?

AES Corporation fell 4.94% to $9.63. The utility’s exposure to global emerging markets and renewables—both under pressure from rate hikes—made it a target for short-term selling.

Why Did Elbit Systems Decline?

Elbit Systems dropped 4.90% to $376.53. Despite defense being a hot theme, the Israeli firm likely saw rotation away from international equities as traders sought U.S.-centric defense names with less forex risk.

Why Did Analog Devices Shares Sink?

Analog Devices lost 4.63% to $211.93 following investor reactions to cautious guidance on semiconductor demand. Despite solid Q2 results, the stock’s premium P/E of 67.71 led to derating concerns.

What Caused Brookfield Renewable Stocks to Slide?

Brookfield Renewable Partners (BEP) and Brookfield Renewable Corporation (BEPC) fell 4.63% and 4.42% respectively, as renewable infrastructure faced valuation resets amid tightening liquidity and global decarbonization funding uncertainties.

Why Did Williams-Sonoma Stock Decline?

Williams-Sonoma fell 4.48% to $160.39, impacted by a softening housing market and fears of discretionary spending cuts. The retailer’s P/E of 18.27 remains solid, but investors worry about near-term earnings resilience.

What Caused Centene Corporation to Drop?

Centene Corporation dropped 4.40% to $58.07. Similar to Humana and Alignment Healthcare, Medicaid policy uncertainty drove sell pressure. The company trades at a modest P/E of 8.56, but political risk is keeping buyers sidelined.

Future Outlook: What Should Investors Watch Next?

The market’s response on May 22 underscores elevated sensitivity to macroeconomic variables and legislative developments. Investors should closely monitor upcoming inflation data, Fed commentary at the June FOMC, and budget negotiations in Washington. Healthcare and renewable sectors appear particularly policy-sensitive, while earnings season previews in June will likely dictate further positioning.

A shift toward lower-beta, defensive stocks or value plays could continue if volatility persists. Meanwhile, institutional flows suggest rotation out of high-multiple and long-duration assets, implying further pain for speculative tech, clean energy, and biotech in the near term.