What Happened?
Shares of global financial services giant Citigroup (NYSE: C) fell 2.5% in the afternoon session after the broader market retreated under pressure from rising bond yields.
The decline was not isolated to Citigroup, as the entire market felt the strain from the bond market. The S&P 500 fell 1.3%, the Dow Jones Industrial Average dropped approximately 1%, and the Nasdaq Composite was down 1.6%.
This market-wide pressure stemmed from the 10-year Treasury yield climbing to 4.27%. When safer assets like government bonds offer higher interest payments, they become more attractive to investors, who in turn may become less willing to pay high prices for relatively riskier assets like stocks, leading to a broad sell-off.
Investors also reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Citigroup? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Citigroup’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 3% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium.
Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Citigroup is up 34.7% since the beginning of the year, and at $94.24 per share, it is trading close to its 52-week high of $96.87 from August 2025. Investors who bought $1,000 worth of Citigroup’s shares 5 years ago would now be looking at an investment worth $1,814.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
