Arm Holdings Slides as Trading Volume Plummets to 351st in U.S. Rankings Amid Sector Rally and Tariff Risks

On August 25, 2025, Arm Holdings (ARM) closed at $137.65, down 0.10% with a trading volume of $260 million, marking a 54.11% drop from the previous day’s volume. The stock ranked 351st in daily trading activity among U.S. equities.

Despite a broad market rally driven by dovish comments from Federal Reserve Chair Powell, which boosted semiconductor stocks like ON Semiconductor and Intel by over 5%, Arm posted a marginal decline. The Fed’s signals of potential rate cuts increased market optimism, though Arm’s muted performance contrasted with its peers. The sector benefited from easing inflation concerns and anticipation of policy easing, yet Arm’s share price remained subdued amid broader sector strength.

Geopolitical and trade-related risks weighed on semiconductor exposure. U.S. President Trump’s proposed tariffs on chips and semiconductors—ranging from 100% to 300%—highlighted potential headwinds for Arm, which supplies IP to global chipmakers. While the company’s licensing model is less directly impacted by tariffs than manufacturing firms, the sector-wide sentiment faced downward pressure from such policy uncertainties.

A backtested strategy of holding high-volume stocks for one day from 2022 to 2025 yielded a compound annual growth rate of 6.98%, with a peak drawdown of 15.46% in mid-2023. The approach demonstrated consistent growth but underscored the volatility inherent in volume-driven trading, particularly during periods of market stress.