Stocks Plummet: eHealth, Lyft, Coursera, Cars.com, Skillz Shares Drop Amid Market Retreat

Several stocks, including eHealth, Lyft, Coursera, Cars.com, and Skillz, plummeted in the afternoon session due to investor apprehension ahead of a key policy speech and confusing inflation signals. The sell-off was largely attributed to a decline in megacap tech and chipmaker shares, leading to a wider market retreat from growth-oriented stocks. These stocks saw notable drops, dragging down the VanEck Semiconductor ETF.

Several stocks, including eHealth (NASDAQ:EHTH), Lyft (NASDAQ:LYFT), Coursera (NASDAQ:COUR), Cars.com (NYSE:CARS), and Skillz (NASDAQ:SKLZ), experienced significant drops in the afternoon session on July 2, 2025, as investors reacted to a combination of factors including a key policy speech and confusing inflation signals. The sell-off was largely attributed to a decline in megacap tech and chipmaker shares, leading to a wider market retreat from growth-oriented stocks. These stocks saw notable drops, dragging down the VanEck Semiconductor ETF.

The U.S. Labor Department reported that the Producer Price Index (PPI), which measures inflation at the wholesale level, jumped 3.3% year-over-year in July, significantly above economists' forecasts of 2.5% [1]. This unexpected increase suggests that cost pressures are building for businesses, which could eventually be passed on to consumers. The hotter-than-expected data prompted investors to scale back bets on an imminent interest rate cut by the Federal Reserve. Higher interest rates can dampen economic activity and negatively affect the valuations of growth-oriented stocks, such as those in the internet sector, leading to a broad market retreat.

Among the affected stocks, eHealth's shares fell 3.8%, while Lyft dropped 3.5%. Coursera, an online learning platform, saw a 3.7% decline, and Cars.com fell 3.7%. Skillz, a consumer subscription company, experienced a 3.5% drop. These declines were influenced by the broader market sentiment, which was negatively impacted by the unexpected inflation data.

Investors are closely watching upcoming economic data releases and policy statements, as they could provide further clarity on the future path of interest rates and the overall economic outlook. Next week brings a fresh batch of inflation data, which could play a role in the future of interest rates, following Federal Reserve Chair Jerome Powell's comments expressing hesitancy over implementing cuts [2].

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. However, investors should exercise caution and conduct thorough research before making any investment decisions.

References:
[1] https://finance.yahoo.com/news/coinbase-ehealth-etsy-udemy-cars-203052134.html
[2] https://www.investing.com/economic-calendar/#20250902