Citigroup Stock: Global Turmoil Triggers Major Plunge

Citigroup shares have plummeted dramatically amid widespread market turmoil, with the stock suffering a staggering 12% drop on Thursday-its steepest single-day decline in months. The selloff comes as part of a broader financial sector meltdown triggered by Donald Trump's proposed trade policies, particularly his planned implementation of a 10% blanket tariff on all imports to the United States. The announcement has sent shockwaves through global markets, with Citigroup among the hardest hit in a banking sector already reeling from economic uncertainty. Other major U.S. financial institutions have experienced similar fates, with Bank of America down 11% while Morgan Stanley, Goldman Sachs, and JPMorgan Chase all recording losses exceeding 6%. Market analysts point to growing recession concerns, with JP Morgan recently increasing its global recession probability forecast from 40% to 60% by year-end.

International Banking Crisis Intensifies

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The banking crisis extends far beyond American borders, evolving into a worldwide financial phenomenon. Japanese financial institutions have been particularly devastated, with the country's three largest banks suffering losses of 20% or more this week-their worst performance in four decades. European banks have likewise faced significant pressure, with the European banking index dropping over 6.5% Friday morning after already falling 5.5% the previous day. Financial experts warn that the uncertainty created by protectionist trade policies could continue weighing on banks for an extended period. While major international banks might partially offset pressure through trading activities benefiting from increased market volatility, the overall outlook remains concerning as companies postpone acquisitions and consumer spending potentially declines.