• The US consumer price index (CPI) rose 3.2% YoY in July, less than the 3.3% predicted by experts surveyed by Dow Jones.
• Five stocks that were affected by the market drop include Galera Therapeutics Inc., Origin Materials Inc., Magnite Inc., Innoviz Technologies Ltd., and Inseego Corp.
• All five stocks experienced sharp declines following their second-quarter earnings reports.
Overview of Stock Market Down
The US consumer price index (CPI) rose 3.2% year-over-year (YoY) in July, less than the 3.3% predicted by experts surveyed by Dow Jones. This news has caused a ripple effect on the stock market, leading to sharp declines in five stocks: Galera Therapeutics Inc.(NYSE: GRTX), Origin Materials Inc.(NASDAQ: ORGN), Magnite Inc.(NASDAQ: MGNI), Innoviz Technologies Ltd.(NASDAQ: INVZ), and Inseego Corp.(NASDAQ: INSG).
Galera Therapeutics Inc.
Galera Therapeutics Inc (NYSE: GRTX) shrank 82.6% after the US Food and Drug Administration (FDA) declined to approve its drug for treating severe mouth inflammation in patients with advanced head and neck cancer. The FDA expressed concerns over the effectiveness and safety profile of the experimental drug, Avasopasem, in reducing severe oral mucositis, a common side effect of radiotherapy. In its response letter, the regulator has asked Galera to provide results from an additional trial for re-submission.
Origin Materials Inc.
Shares of Origin Materials (NASDAQ: ORGN) plummeted dramatically on Thursday, with the stock plunging below $2, marking a significant drop of 67.90%. The drastic downturn comes despite the company reporting a Q2 revenue of $6.9 million, starkly contrasting the absence of revenue in the same quarter last year. Furthermore, the company closed the quarter with strong liquidity of $218 million. However, the market reaction was primarily driven by recent updates from Origin Materials, including a delay in its second commercial plant’s phase 1 launch timeline—Origin 2—which is now expected to commence operations between late 2026 and 2027.
Magnite Inc.
Magnite Inc.(NASDAQ: MGNI), a leading ad tech company witnessed a significant decline in its shares by 33.23% on Thursday following an announcement of its second-quarter results despite beating estimates with an EPS at $0
