Affirm Holdings, Inc. (AFRM) saw its stock price plummet 14.26% during intraday trading on Friday, extending its losses from the previous session amid escalating global trade tensions and growing concerns over the U.S. economy. The sharp decline follows a significant 19% drop on Thursday, highlighting the increased volatility in the fintech sector.

The sell-off in Affirm's stock appears to be driven by several factors. First and foremost, China's announcement of retaliatory tariffs of 34% on all U.S. imported goods, set to begin on April 10, has sent shockwaves through the market. This move comes in response to President Donald Trump's sweeping global tariffs announced earlier in the week. The escalating trade war has raised fears of potential inflationary pressures and a slowdown in consumer spending, which could directly impact Affirm's "buy now, pay later" business model.

Additionally, the broader market downturn has hit the tech and fintech sectors particularly hard. The Magnificent Seven stocks, including major tech giants, shed $1.03 trillion in market cap on Thursday alone. This negative sentiment has spilled over to companies like Affirm, which rely heavily on consumer financial activity. As investors grapple with the potential economic fallout from the new tariffs and a possible recession, fintech firms may continue to face significant headwinds in the near term.