S&P/ASX 200 Index Faces Downturn as Key Stocks Experience Declines

As of Wednesday's trading session, the S&P/ASX 200 Index (ASX: XJO) is grappling with a 0.25% decline, settling at 7,501.3 points. Several prominent ASX-listed shares are contributing significantly to this downturn. Here's an insight into why these stocks are witnessing a drop:

1. Arcadium Lithium (ASX: LTM)

Current Price: AU$9.21 (-8.5%)

The Arcadium Lithium share price is witnessing an 8.5% decrease, currently standing at AU$9.21. This decline closely mirrors Livent Corp shares on the NYSE, which experienced a sharp drop in after-hours trade. The market is reacting to the impending merger of Allkem and Livent, forming Arcadium. Concerns about declining battery material prices have impacted several lithium shares, leading to significant sell-offs.

2. BHP Group Ltd (ASX: BHP)

Current Price: AU$48.09 (-2%)

BHP's share price has dropped by almost 2%, reaching AU$48.09. This dip follows a challenging night of trade for the mining giant's NYSE-listed shares. Investors are responding to the World Bank's cautionary note, predicting the weakest global economic growth in three decades in the first half of 2024. Fears are rising that softer demand for iron ore and other commodities could be on the horizon.

3. Core Lithium Ltd (ASX: CXO)

Current Price: AU$0.19 (-2.5%)

The Core Lithium share price is down by 2.5%, reaching 19 cents. Investors are continuing to divest from this lithium miner's shares after it opted to suspend production as a cash-saving measure. Concerns are surfacing about potential production gaps in FY 2025, potentially necessitating the company to raise capital again.

4. Magellan Financial Group Ltd (ASX: MFG)

Current Price: AU$8.88 (-3%)

Magellan's share price has experienced a more than 3% decline, reaching AU$8.88. Despite no specific news, analysts speculate that the recent surge in its share value might have been excessive. Earlier this week, Citi downgraded Magellan to a sell rating, setting a price target of $8.10, contributing to the current downward trend.

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