Verisk Analytics (VRSK) stock plummeted 11.93% in pre-market trading on Wednesday, despite reporting better-than-expected earnings results for the fourth quarter of 2024. The sell-off appears to be driven by broader market concerns over declining consumer and business confidence amidst heightened economic uncertainty.

For the quarter ended December 31, 2024, Verisk Analytics reported adjusted earnings per share (EPS) of $1.61, surpassing the consensus estimate of $1.60. Revenue rose 8.6% year-over-year to $735.6 million, also beating analysts' expectations of $733.7 million. The company's strong financial performance was overshadowed by mounting concerns about the macroeconomic environment and its potential impact on future growth prospects.

Verisk's share price decline reflects the overall market unease, as investors grapple with the implications of deteriorating consumer confidence and heightened economic policy uncertainty. Recent surveys have shown a sharp decline in consumer sentiment, with inflation expectations surging and concerns over the potential impact of tariffs on household budgets. Business confidence has also taken a hit, with firms expressing growing anxiety about the blizzard of new policy signals from the current administration, making it challenging to plan and invest.