$Fiserv, Inc.(FISV.US) dropped by three points, $Mastercard(MA.US) is also falling, and $Citigroup(C.US) basically hasn't moved. The two payment companies are weakening together, while traditional banks have stabilized.
In an environment where rate cut expectations are heating up, banks' net interest margins should be compressed, and transaction volumes for payment networks should benefit—the prices given, however, offer the exact opposite answer. Is the market starting to worry that consumer spending has peaked, or has the narrative of stablecoins replacing payment networks been brought up again?
The answer is more likely the former. The stability of $Citigroup(C.US) relies on the expectation of a steepening yield curve, which has nothing to do with the strength or weakness of consumption.
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