New York, Feb 27, 2026, 18:33 (EST) — Trading after the bell.
- Citigroup dropped 4.5% after the bell, part of a wider slide that hit U.S. bank stocks hard.
- Traders cited a fresh bout of concern over private credit, with persistent inflation seen delaying any rate cuts.
- The next big dates for Citi: the Fed’s March 17-18 meeting, then Citi’s own earnings call coming up April 14.
Citigroup Inc shares tumbled Friday, recently off 4.5% at $110.19 after hours as bank stocks slumped late in the month, weighing on the broader sector. Citi moved between $108.88 and $116.88 during the session, with volume near 18.0 million shares.
Citi’s shift is drawing attention, given its status as a bellwether for both U.S. banks and capital markets. Jitters over credit risk have crept back in. Investors haven’t hesitated to dump bank stocks when the conversation flips from rate hikes boosting margins to worries that higher rates spell trouble for borrowers.
The decline on Friday landed right at month-end, a point when funds typically rebalance and lighter liquidity tends to amplify sector swings beyond what the headlines suggest. Even so, financials had a rough showing on the tape.
Shares of banks tumbled after the collapse of UK mortgage lender Market Financial Solutions rattled nerves over potential trouble hiding in private credit—a sector that’s been expanding quickly, mostly outside traditional banks. “We’re starting to continue to see these types of things pop up, which is definitely a problem,” said Joe Saluzzi, co-head of equity trading at Themis Trading. The S&P 500 bank index dropped roughly 4%. Reuters
Macro factors gave little relief. A producer-price reading came in hotter than forecasts, fueling the risk-off tone. CME’s FedWatch tool showed traders betting the Federal Reserve holds rates steady in March. “To wrap up the month of February, we were reminded there are still some cracks out there,” said Ryan Detrick, chief market strategist at Carson Group. Reuters
Citi highlighted a win on Thursday, noting BlackRock has tapped Citi Investor Services to handle select middle-office tasks for roughly $4 trillion in U.S. iShares ETFs using BlackRock’s Aladdin system. “This latest collaboration with BlackRock reflects the outcome of our product and technology investments,” said Chris Cox, Citi’s head of investor services. BlackRock’s Derek Stein pointed to the move as a sign of trust in Citi’s capacity to manage the scale and demands of the iShares platform. Citi
The agreement puts a spotlight on Citi’s fee-driven servicing operations—an area investors frequently ask about, since it doesn’t rely as much on loan expansion. Still, it’s a case in point: even good news for an individual firm can get drowned out by the industry’s larger concerns, like what happened Friday.
Still, there’s a risk angle that can’t be ignored. A UK mortgage meltdown triggering bigger write-downs, fire sales, or unanticipated hits for major banks could keep financial stocks on the back foot—even if nobody officially calls a recession. Should inflation dig in, “rates higher for longer” stops being friendly and starts causing trouble.
Investors now turn to see if the private-credit jitters ripple out to wider funding markets, and they’re waiting for fresh information on lender exposures and recoveries. The Fed’s policy meeting, set for March 17-18, stands as the next big macro event. Federal Reserve
Citi’s upcoming first-quarter earnings call on April 14, followed by its investor day scheduled for May 7, sets the stage for tough questions from analysts. Management faces scrutiny on credit exposure, expense trends, and whether services growth is enough to counter unpredictable markets. Citi
