The stock market fell sharply anew on Wednesday, with all major indices ending in the red, as investor sentiment was dampened by Federal Chairman Jerome Powell’s bearish comments on the US economy, saying that the US’ tariff policies could drive up inflation and “move us further away from our goals.”

The tech-heavy Nasdaq dropped the hardest, down 3.07 percent. The S&P 500 declined by 2.24 percent, and the Dow Jones was down by 1.73 percent.

To come up with the list of the stocks that declined on Wednesday, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

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Robinhood Markets, Inc. (NASDAQ:HOOD)

Robinhood Markets, Inc. (NASDAQ:HOOD) dropped for a second day on Wednesday, losing 7.76 percent to close at $40.66 apiece as investor sentiment was weighed down by Federal Reserve Chairman Jerome Powell’s statement that he expects softer growth for the first quarter of the year.

Powell’s comments were particularly relevant for Robinhood Markets, Inc. (NASDAQ:HOOD), which heavily relies on the huge trading activity to boost revenues. With projected soft first-quarter growth, investors expect that the growth would dampen market trading activities.

In recent news, Robinhood Markets, Inc. (NASDAQ:HOOD) said it officially made a foray into the betting market platform by integrating the predictions market hub into its application, which will allow investors to trade on the outcomes of some of the world’s biggest events.

At launch, the hub will allow customers to trade contracts for what the upper bound of the target fed funds rate will be in May, as well as the upcoming men’s and women’s College Basketball Tournaments.

The prediction markets hub and corresponding contracts will initially be available across the US through KalshiEX LLC, a CFTC-regulated exchange.

Overall HOOD ranks 5th on our list of the stocks that declined on Wednesday. While we acknowledge the potential of HOOD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HOOD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

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