Overview

• The KBW Nasdaq Bank Index fell over 8% on April 3, 2025, marking its steepest decline since the March 2023 regional banking crisis.
• Major banks, including Citigroup, Bank of America, and Morgan Stanley, saw significant stock declines, with Citigroup dropping 11%.
• Regional banks such as Western Alliance and Zions Bancorp were hit hardest, experiencing double-digit stock losses.
• Economists caution that the tariffs could reduce GDP growth by up to 1.5 percentage points, increase inflation, and heighten the risk of stagflation.
• Market uncertainty is expected to weigh on investment banking income, consumer spending, and loan demand, further pressuring the financial sector.