Wednesday was a momentous day on Wall Street, with the Federal Open Market Committee deciding to lower interest rates in a split decision. The central bank settled on a quarter-point cut, but two officials voted to keep rates steady, and another wanted a larger half-point reduction instead. That kept markets volatile, but some stocks ended the session with big losses. McDermott International (NYSE: MDR), Roku (NASDAQ: ROKU), and NeoPhotonics (NYSE: NPTN) were among the worst performers. Here's why they did so poorly.
Shares of McDermott International plunged 63% after the energy construction and engineering specialist reportedly brought on professional consultants to help it turn around its ailing business. In a statement, McDermott said that hiring external advisors is a routine event and that it's looking to take "positive and proactive measures ... to improve its capital structure and the long-term health of its balance sheet." Yet with so much pressure in the energy markets right now, investors are worried that McDermott might lack the financial flexibility to get things turned around quickly.
Image source: McDermott International.