Pacific Gas & Electric's stock fell 19% and Edison International's dropped 24% after California lawmakers rejected a proposal that would have capped the financial liabilities of utility companies for wildfire damages.
This decision prompted several Wall Street analysts to downgrade these stocks, with Mizuho analysts suggesting that investors should consider utilities with fewer wildfire liability concerns.
In contrast, Science Applications International's shares rose 4% following an increase in its earnings forecast for the year, now expecting adjusted earnings between $10.65 and $10.75 per share, up from a previous range of $9.90 to $10.10.
GameStop's stock increased by 3% after it reported preliminary second-quarter results indicating a rise in operating and net income, despite a projected decline in net sales.
Other notable movements included Apple, which saw a nearly 2% decline after news of a leadership change in its App Store division, and Howmet Aerospace, which dropped over 8% following Elon Musk's announcement that SpaceX would produce turbine components in-house.
Meanwhile, Eli Lilly's shares fell more than 1% as it announced a $2.9 billion acquisition of Merida Biosciences, and Aon experienced a 7% drop after agreeing to acquire USI Insurance Services for $17 billion