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Visa Stock Falls Amid Fed Uncertainty, Tariff Inflation Risks: What's Going On Recently?

Benzinga·04/22/2025 14:06:05
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Visa Inc (NYSE:V) shares are trading lower by 4% to $322.90 over the past week, recovering marginally Tuesday, as growing policy and macroeconomic uncertainty rattled markets and raised concerns about consumer spending and cross-border transaction volumes—two key revenue drivers for the global payments giant.

What To Know: Federal Reserve Chair Jerome Powell's remarks last week signaled a softening in U.S. economic growth, coupled with persistent inflation risks—especially from newly imposed tariffs.

These developments complicate the Fed’s path forward and hint at a prolonged period of uncertainty, which can weigh on transaction volumes and consumer sentiment.

Read Also: Trump Meets With Walmart, Home Depot And Target CEOs To Discuss Tariff Impacting Consumer Prices

Additionally, Powell flagged deteriorating business and consumer confidence, compounded by tighter immigration and new trade barriers.

For Visa, this creates multiple headwinds: reduced discretionary spending, fewer cross-border transactions, and potential frictions in global e-commerce flows—all core to its growth strategy.

Markets were further spooked Monday as political interference fears surged, following President Donald Trump's public attacks on Powell and threats to remove him.

The resulting, recent spike in bond yields and dollar weakness could dampen international travel and spending, directly impacting Visa's lucrative cross-border business segment.

Read Also: Verizon Loses 289 Thousand Postpaid Subscribers In Q1 Due To Price Hikes And Competition

Investors can gain exposure to Visa by investing in the Financial Select Sector SPDR Fund (NASDAQ:XLF).

How To Buy V Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Visa’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, Visa has a 52-week high of $366.54 and a 52-week low of $252.70.