Why Citigroup (C) Stock Is Falling Today

What Happened?

Shares of global financial services giant Citigroup (NYSE:C) fell 5.8% in the afternoon session after hotter-than-expected inflation data and rising concerns over credit risk rattled investors. 

January's Producer Price Index (PPI), a measure of wholesale inflation, rose 0.5% against expectations of 0.3%, with the core component jumping 0.8%. This report fuels the narrative of "sticky inflation," suggesting the Federal Reserve may have limited room to cut interest rates. Compounding these worries are growing anxieties in the credit markets. According to a Bank of America strategist, problem loans are an increasing concern that could pressure lenders. Investors are reassessing credit risk, particularly in private-credit and leveraged-loan markets, weighing on the valuations of banks sensitive to the economic cycle.

The shares closed the day at $110.15, down 5.2% from previous close.

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What Is The Market Telling Us

Citigroup’s shares are not very volatile and have only had 6 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 biggest move we wrote about over the last year was about 2 months ago when the stock gained 3.6% on the news that Barclays raised its price target on the stock to $146 from $115 while maintaining its "Overweight" rating. The nearly 27% increase in the price target pointed to growing confidence from the analyst. Adding to the positive news, Citigroup confirmed its board approved a plan to sell its remaining operations in Russia. While the bank expected this deal to result in a pre-tax loss, the sale was also anticipated to benefit its key capital ratio by removing associated risk-weighted assets from its books. The day's rally was part of a broader upward trend for the stock, reflecting increased investor confidence in the bank's financial health.

Citigroup is down 7.2% since the beginning of the year, and at $110.10 per share, it is trading 11% below its 52-week high of $123.77 from February 2026. Investors who bought $1,000 worth of Citigroup’s shares 5 years ago would now be looking at an investment worth $1,583.

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