What's Going On With Robinhood Markets (HOOD) Stock?

Robinhood Markets Inc HOOD shares fell sharply Wednesday afternoon as markets dipped following Federal Reserve Chair Jerome Powell's remarks linking rising inflation risks to newly imposed trade tariffs. Powell's warning of "temporary, or potentially persistent" inflation driven by tariffs spooked investors already wary of slowing economic growth.

What To Know: Robinhood, which relies heavily on active retail trading, is particularly sensitive to market volatility and consumer sentiment. Powell's acknowledgment of softening first-quarter growth and deteriorating household confidence adds pressure on Robinhood's user base—largely retail investors—who may reduce trading activity in uncertain environments.

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Moreover, Powell's dismissal of a so-called "Fed put" could remove a psychological safety net for equity markets, increasing volatility—historically a double-edged sword for Robinhood. While higher volatility can drive short-term trading spikes, prolonged uncertainty risks a pullback in deposits and trading volume.

Further concern stems from Powell's mention of weakened sentiment in tech-driven urban centers—core to Robinhood's user demographics. With both inflation and economic policy in flux, investors could be fearing a hit to Robinhood's growth outlook, particularly in payment-for-order-flow revenue streams.

Read Also: ‘I’m Going To Say No’: Powell Rejects Idea Fed Would Rescue Falling Markets

Price Action: HOOD shares are trading lower by 8.49% to $40.34 Wednesday afternoon.

How To Buy HOOD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Robinhood Markets’ case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, HOOD has a 52-week high of $66.08 and a 52-week low of $13.98.