Wells Fargo (WFC) shares tumbled 5.15% in pre-market trading on Friday, as part of a broader selloff in the banking sector. The decline comes amid growing concerns over the economic impact of President Donald Trump's new sweeping global tariffs and fears of a potential recession.

The banking sector as a whole faced significant pressure, with the KBW Nasdaq Bank Index having dropped 9.9% in the previous session. Major banks, including Bank of America, JPMorgan Chase, and Goldman Sachs, also saw their shares decline in pre-market trading. The selloff reflects investors' worries about the potential economic slowdown and its implications for the banking industry.

Analysts suggest that the new tariffs could lead to reduced loan demand, increased delinquencies, and a slowdown in merger and acquisition activities, all of which could hurt banks' profitability. Additionally, the possibility of stagflation – high inflation combined with low economic growth – has further dampened investor sentiment. While banks are generally in better shape than they were before the 2008 financial crisis, the uncertain business environment and potential economic weakness are weighing heavily on the sector.