Bank Stocks Plunged on Monday. Here's Why Citigroup, Goldman Sachs, and SoFi all Got Hit so Hard.
The stock market was down big on Monday. As of 3:10 p.m. EDT, the Dow Jones Industrial Average was down 2.6% and was on pace for its worst day of the year, and the S&P 500 was doing even worse, down by 3.4%. Worse yet, the tech-heavy Nasdaq declined by nearly 5% and was set to post its worst decline since September 2022.Bank stocks were doing even worse than these major benchmarks. And it wasn't just big banks: Across the financial-services industry, stocks were taking a big hit. To name a few examples, megabank Citigroup (NYSE: C) was down by about 6%; investment banking giant Morgan Stanley (NYSE: MS) was lower by 8%; and online banking disruptor SoFi (NASDAQ: SOFI) plunged by about 12%.To be sure, while today's moves look scary, they are just the latest in a prolonged sell-off that has taken place over the past couple of weeks. Citigroup and Goldman Sachs have both fallen by about 22% since their mid-February 2025 highs. SoFi has declined by about 38% since reporting earnings in late January.Continue reading
The stock market was down big on Monday. As of 3:10 p.m. EDT, the Dow Jones Industrial Average was down 2.6% and was on pace for its worst day of the year, and the S&P 500 was doing even worse, down by 3.4%. Worse yet, the tech-heavy Nasdaq declined by nearly 5% and was set to post its worst decline since September 2022.
Bank stocks were doing even worse than these major benchmarks. And it wasn't just big banks: Across the financial-services industry, stocks were taking a big hit. To name a few examples, megabank Citigroup (NYSE: C) was down by about 6%; investment banking giant Morgan Stanley (NYSE: MS) was lower by 8%; and online banking disruptor SoFi (NASDAQ: SOFI) plunged by about 12%.
To be sure, while today's moves look scary, they are just the latest in a prolonged sell-off that has taken place over the past couple of weeks. Citigroup and Goldman Sachs have both fallen by about 22% since their mid-February 2025 highs. SoFi has declined by about 38% since reporting earnings in late January.
