HSBC Holdings Plunges 5.18% Amid U.S. Tariff Fears

On April 4, 2025, HSBC Holdings experienced a significant drop of 5.18% in pre-market trading, reflecting a notable decline in investor sentiment.

HSBC Holdings has been actively engaged in stock repurchases, which is a common strategy to boost shareholder value. On April 2, 2025, the company repurchased a total of 335 million shares across various exchanges, including the London Stock Exchange, CBOE Europe, and Turquoise. The total amount spent on these repurchases was approximately 2.64 billion pounds, with the highest single repurchase occurring in Hong Kong, where 159 million shares were bought back for 1.41 billion Hong Kong dollars.

The recent decline in HSBC Holdings' stock price can be attributed to broader market concerns, particularly the impact of new tariffs announced by the U.S. government. These tariffs have raised fears of a potential trade war, which could negatively affect global economic growth and, consequently, the financial sector. HSBC, being one of Europe's largest lenders, is particularly vulnerable to such economic uncertainties, as evidenced by its significant drop in share price.