The S&P/ASX 200 Index (ASX: XJO) is back on form on Wednesday and on course to record a decent gain. At the time of writing, the benchmark index is up 0.3% to 6,664.8 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:
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Baby Bunting Group Ltd (ASX: BBN)
The Baby Bunting share price is down a further 3% to $3.01. Investors have continued to sell this baby products retailer's shares following a surprisingly bad update at its annual general meeting. The team at Citi was disappointed. In response, the broker downgraded its shares to a neutral rating and slashed its price target from $5.62 to $3.32.
Block Inc (ASX: SQ2)
The Block share price is down 2% to $87.20. This follows a poor night of trade for the payments company's shares on Wall Street. Investors were selling Block and other technology shares amid weakness in the tech sector. This led to the NASDAQ index dropping to a two-year low.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price is down 2.5% to $16.81. This appears to have been driven by a pullback in iron ore prices overnight. In addition, on Monday, analysts at Morgans downgraded Fortescue's shares to a reduce rating and cut the price target on them to $15.00. It has warned that the company's free cash flow could be heading to zero in the near future.
Santos Ltd (ASX: STO)
The Santos share price is down almost 2.5% to $7.54. Investors have been selling Santos and other ASX energy shares following weakness in oil prices overnight. This was driven by concerns over a potential global recession and COVID lockdowns in China. Both could reduce demand for oil from end users.
