Affirm Holdings, Inc. (AFRM) saw its stock plummet 5.17% in pre-market trading on Thursday, as the escalating US-China trade war continues to rattle financial markets and particularly impact fintech companies. The sharp decline comes amid a broader selloff in the fintech sector, triggered by President Donald Trump's recent trade policy decisions.

The market turmoil follows President Trump's announcement of increased tariffs on China, raising them to 125% from 104%. This move, coupled with the temporary lowering of tariffs on dozens of other countries, has created a complex trade landscape that is fueling uncertainty among investors. The intensifying trade tensions between the world's two largest economies are raising concerns about potential negative impacts on consumer confidence and spending, which could directly affect fintech companies like Affirm.

Affirm is not alone in facing pre-market pressure. Other fintech companies, including Pagaya Technologies, Upstart Holdings, PayPal, and Block, are also experiencing declines. The sector-wide downturn reflects growing apprehension about the broader economic implications of the trade war, particularly for companies reliant on consumer spending and credit markets. As uncertainty persists, investors appear to be reassessing their positions in fintech stocks, leading to the observed pre-market plunge for Affirm and its peers.