Here's Why Axos Financial Fell 12% in February
Shares of Axos Financial (NYSE: AX) fell 11.6% in February, according to data provided by S&P Global Market Intelligence. The stock had risen modestly following its second-quarter fiscal 2020 earnings release on Jan. 29. But the broad market correction took most stocks down with it, and Axos Financial was no exception. Investors likely anticipated federal interest rate cuts, and that's not great for companies like Axos.
A health crisis like COVID-19 has obvious repercussions to consumer spending, especially in places like China, where stores were forced to temporarily close. It also has obvious effects on manufacturing, as workers stay home to prevent the further spread of the disease. A less obviously affected industry is the financial sector, as interest rate cuts can hurt a bank's profitability.
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