By Hannah Erin Lang
It's been a bad day for financial-sector stocks. Robinhood Markets was among those leading the downslide.
The brokerage's shares tumbled nearly 20% Monday, as recession fears and other market jitters dragged on bank and brokerage stocks. Charles Schwab stock fell roughly 4.5%, and shares of Interactive Brokers dropped 13%.
But the decline is a sharp reversal of fortune for Robinhood, whose shares surged after the election and climbed 27% in the first two months of 2025.
On Friday, the Financial Industry Regulatory Authority said Robinhood would pay roughly $30 million to settle an investigation into a range of violations, some of which dated back more than a decade.
Also dragging on brokerage stocks are crypto concerns. Bitcoin was trading below $80,000 Monday, after the Trump administrations' plans for a U.S. crypto reserve disappointed some investors. At a White House Crypto Summit on Friday, officials stopped short of announcing plans for the government to purchase bitcoin or other cryptocurrencies.
In the fourth quarter, more than half of the revenue Robinhood earned on customer trades came from crypto transactions.
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(END) Dow Jones Newswires
March 10, 2025 17:17 ET (21:17 GMT)
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