Why Axos Financial Stock Dropped Today
Shares of Axos Financial (NYSE: AX) dropped 12.7% on Monday, coinciding with a major sell-off in bank stocks and the market as a whole.
The financial markets, already reeling from fears that the COVID-19 coronavirus outbreak could stall the global economy, were rocked over the weekend by news that OPEC failed to reach an agreement with its allies to curtail oil production. Oil prices plunged more than 20% in response, taking a huge number of energy stocks down with them.
This frightening confluence of events sent investors scurrying toward safe-haven investments today. Investors piled into U.S. Treasury bonds, sending yields down to historic lows. In turn, shares of many banks -- whose profit margins tend to shrink when interest rates decline -- fell sharply.
Source Fool.com
