Affirm Holdings, Inc. (AFRM) saw its stock plummet 5.78% in pre-market trading on Friday, extending its losses from the previous day amid growing concerns over global tariffs and their potential impact on the U.S. economy. This decline follows a sharp 19% drop on Thursday, highlighting the increased volatility in the fintech sector.

The sell-off in Affirm's stock appears to be driven by two main factors. First, there are mounting worries that the sweeping global tariffs announced by President Donald Trump could lead to higher inflation, potentially affecting consumer spending and loan demand. Second, fears of an increasingly sluggish U.S. economy are raising concerns about reduced demand for consumer loans, which directly impacts Affirm's "buy now, pay later" business model.

Affirm's pre-market decline is part of a broader market downturn, with major indices and tech stocks facing significant pressure. The negative sentiment is particularly pronounced in the fintech sector, with other players like PayPal also experiencing notable declines. As investors grapple with the potential economic fallout from the new tariffs and a possible slowdown in consumer spending, companies like Affirm that rely on consumer financial activity may continue to face headwinds in the near term.