Robinhood (HOOD) saw its stock plummet 8.86% in pre-market trading on Friday, as part of a broader and severe selloff in the financial sector. The sharp decline comes amid growing concerns over economic uncertainty and the potential impact of new tariffs announced by President Donald Trump.

The selloff in financial stocks was widespread, affecting banks, brokerages, and wealth management firms. Robinhood, as a prominent brokerage platform, was hit particularly hard by these market pressures. The company's shares had already dropped 10.4% in the previous day's trading, reflecting heightened investor anxiety about the sector's outlook.

Analysts suggest that the financial sector, including companies like Robinhood, could face significant challenges if economic conditions deteriorate. A potential economic slowdown or recession could lead to reduced trading activity, decreased use of margin loans, and lower fees from assets under management. Additionally, if equity markets continue to fall, brokerage firms that rely on payment for order flow as part of their revenue model may see their earnings substantially impacted. As investors weigh the gloomy economic outlook and the potential ramifications of increased tariffs, Robinhood and its peers in the financial services industry may continue to face volatility in the near term.