NeoGenomics, Inc. (NEO) stock experienced a decline in after-hours trading, primarily influenced by broader market movements following the Federal Reserve's recent announcements. The Fed's decision to cut interest rates by 25 basis points was anticipated, but the revelation of a more cautious outlook for 2025, with only two expected rate cuts instead of four, unsettled investors. This shift in monetary policy expectations led to a significant sell-off across U.S. stock indices, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all posting substantial losses.
The broader market downturn, driven by concerns over the Fed's hawkish stance, particularly affected stocks sensitive to interest rate changes, including smaller companies like NeoGenomics. The Russell 2000 index, which tracks small-cap stocks, fell sharply, reflecting the increased pressure on companies that rely on borrowing for growth. This environment of rising Treasury yields and reduced expectations for future rate cuts contributed to the negative sentiment surrounding NeoGenomics' stock.
NeoGenomics' stock closed at $16.49, down 6.04% from the previous day's close of $17.55. In after-hours trading, the stock saw a slight uptick of 0.21%, bringing the current price to $16.52.