Here's Why Capital One Stock Is Getting Crushed by Tariffs

Market Overview - The stock market experienced its worst day in several years due to President Trump's global tariff announcement, with the S&P 500 dropping more than 4% as of 2:30 p.m. ET [1] Company-Specific Impact - Capital One Financial's shares fell by approximately 9% following the tariff news, indicating a significant negative reaction [2] - Capital One's focus on credit card lending makes it particularly vulnerable to economic downturns, with about 50% of its $328 billion loan portfolio consisting of credit card receivables [5] Industry Concerns - Banks' financial health is closely tied to the U.S. economy's strength, requiring high consumer confidence and low unemployment to maintain lending growth and low loan default rates [3] - Economic weakening or recession could lead to reduced loan volumes and increased loan defaults, exacerbated by rising prices from tariffs, which could further strain consumers already affected by past inflation [4]