From Yahoo Finance: 2025-04-04 05:32:00

Bank stocks worldwide plummeted on Friday amid recession fears sparked by President Trump’s tariff announcement. The S&P 500 banks index dropped over 7%, with Citigroup and Bank of America hit the hardest. JPMorgan Chase, Goldman Sachs, and Morgan Stanley also saw significant losses.

China retaliated with a 34% tariff on U.S. goods, intensifying the selloff as investors anticipated reduced consumer spending and loan demand. Raymond James warned of a potential recession, leading banks to revise earnings projections. Citigroup plunged over 10.5%, reflecting market stress and disappointment in its profitability.

The turmoil extended globally, with European banks falling 8% and Japanese megabanks facing their biggest losses since 2008. Trump’s trade war impact is widespread, with a universal 10% tariff on U.S. imports set to take effect, raising fears of escalating disputes and recession odds.

Bank stocks’ sharp decline signals a significant shift from post-election optimism. While tariffs don’t directly impact banks, they may dampen M&A activity and consumer sentiment, potentially slowing loan demand and investment banking fees. Major U.S. banks are expected to address the crisis in upcoming earnings reports.

German, Italian, and French banks also suffered losses, while Japanese banks faced their worst weekly decline in decades. Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group all saw substantial drops. The banking sector’s future remains uncertain amid ongoing market turbulence.



Read more at Yahoo Finance: Global rout in bank shares intensifies as recession fears mount