Wells Fargo's stock experienced a significant plummet of 7.28% during the intraday trading session on Tuesday. The decline in the banking giant's shares was driven by concerns over slowing economic growth and ongoing regulatory issues plaguing the banking sector.

Fears of a potential recession intensified as the Federal Reserve Bank of Atlanta drastically slashed its forecast for first-quarter GDP growth to a contraction of 2.8%, down from an earlier projection of 4% growth. These worries were exacerbated by the escalating trade tensions between the United States and its major trading partners, with newly imposed tariffs and the potential for retaliatory measures threatening to disrupt global economic activity.

Adding to the woes of the banking industry were fresh reports of manual transfer errors at Citigroup, reigniting concerns about risk management and regulatory compliance within the sector. These incidents drew scrutiny from regulators and raised questions about the effectiveness of internal controls at major financial institutions like Wells Fargo.