U.S. stock futures took a significant downturn on Tuesday, with the Dow futures dropping by approximately 700 points. This decline reflects broader concerns in the market, particularly following the announcement from Valneva SE, whose shares plummeted in pre-market trading after the company revealed it has withdrawn its Biologics License Application (BLA) and Investigational New Drug (IND) applications for the IXCHIQ Chikungunya vaccine in the United States. This decision follows a suspension from the U.S. Food and Drug Administration (FDA) and a review of new serious adverse events.
Valneva’s stock fell by 7.7%, bringing its pre-market price down to $9.29. The company’s challenges have raised questions about the future of its vaccine development.
Other Notable Declines in Pre-Market Trading
Several other companies also experienced substantial drops in their stock prices during the pre-market session. Rezolve AI PLC saw a significant decline of 15%, trading at $3.92. Similarly, POET Technologies Inc fell 11.2% to $7.37, while Forward Industries Inc decreased by 10.5%, reaching $7.70.
The decline continued with Babcock & Wilcox Enterprises Inc shares dipping 9.9% to $7.59 and Bakkt Holdings Inc falling 9.5% to $19.38 after experiencing a 10% increase just last Friday.
Other notable stocks included Applovin Corp, which fell 9.5% to $515.03 following a previous decline of 6%. ALT5 Sigma Corp shares dropped 8.9% to $2.36 despite recently regaining compliance with Nasdaq regulations. Meanwhile, HIVE Digital Technologies Ltd and Aeva Technologies Inc saw declines of 7.7% and 6.8%, respectively.
Tesla and NVIDIA Also Experience Losses
In the automotive sector, Tesla Inc shares fell 2.7% to $425.75. CEO Elon Musk confirmed that the company’s vehicles equipped with the AI4 (HW4) chip would be capable of achieving unsupervised autonomous driving without requiring any upgrades. NVIDIA Corp, a leader in graphics processing units, also saw a decline of 2.4%, trading at $181.77.
The overall market sentiment reflects cautious investor behavior amid significant corporate announcements and regulatory developments. As trading continues, investors will be closely watching these and other stocks for further movements.
