Why Did Citigroup Drop 3.1%? Trade Uncertainties, Market Volatility

On April 10, 2025, Citigroup's stock experienced a 3.1% drop in pre-market trading, reflecting investor concerns and market volatility.

Citigroup's analysts have expressed skepticism about the effectiveness of the 90-day tariff suspension announced by President Trump. Andrew Hollenhorst, the bank's chief economist, noted that the suspension does not cover all countries and that the average effective tariff rate in the U.S. has increased by approximately 21 percentage points since the beginning of 2025. This increase, coupled with ongoing trade uncertainties, is expected to continue to impact economic growth and inflation.

In addition to trade concerns, Citigroup's global wealth management division has advised high-net-worth clients to exercise caution in the current market environment. Despite the market potentially having weathered its most severe shocks, the bank recommends a prudent approach given the extreme volatility.