Why TMC The Metals Company Stock Sank 10% Last Month and Has Kept Falling in August

TMC (The Metals Company) shares plummeted 10% in July, starkly underperforming broader market gains. While the S&P 500 and Nasdaq climbed 2.2% and 3.7% respectively on Optimism around U.S.-China trade negotiations, TMC faced headwinds from the same developments.

The TRUMP administration's decision to lift AI chip export restrictions to China—a tactical concession to advance trade talks—triggered the selloff. Investors viewed this as eroding competitive advantages in critical technologies. The pullback follows an explosive valuation surge earlier this year, suggesting profit-taking amid shifting geopolitical winds.

Semiconductor policy now serves as both economic lever and political currency. Market reactions highlight how tariff negotiations Ripple beyond direct participants, catching commodity players like TMC in the crosscurrents.