Fintech stocks fall on tariff news
Consumer fintech companies are taking a hit after President Donald Trump imposed hefty tariffs on the US’s largest trading partners, a sign investors may be starting to feel bearish on stocks that are sensitive to consumer spending.
Shopify, an e-commerce platform, and Block, a payments company, fell by more than 7%. SoFi Technologies, a digital bank, fell by more than 8%. Increasingly popular buy-now-pay-later platforms like Affirm and Sezzle also fell by more than 5%.
Tariffs threaten to increase prices as importers pass the tax on to consumers. Inflation remains above the Federal Reserve’s 2% target, and consumer sentiment has worsened.
