Visa Inc. (NYSE: V) saw its stock price plummet 5.31% in pre-market trading on Monday, as investors grapple with broader economic concerns and heightened global tensions. The sharp decline comes despite Visa's recent strong financial performance, suggesting that external factors are weighing heavily on investor sentiment.

The US stock market has experienced a turbulent first quarter of 2025, marked by increased volatility and negative returns across major indices. Concerns surrounding tariffs, economic data, and the performance of key technology stocks have contributed to this challenging period for investors. The recent announcement of DeepSeek, a revolutionary AI software developed in China, has sent shockwaves across global markets, particularly affecting US-listed tech firms.

Adding to the market turmoil, the US government has implemented new policies aimed at promoting domestic tech companies while simultaneously reducing the impact of Chinese AI advancements. Furthermore, the Federal Reserve's decision to maintain high interest rates, coupled with newly announced tariffs between the US, China, and Europe, has fueled fears of "continuous stagflation" - a combination of persistent inflation, low growth, and high unemployment.

Despite these macroeconomic headwinds, Visa's latest earnings report for Q1 2025 showed strong performance, with revenue of $9.51 billion beating estimates and the number of new cards issued rising to nearly 4.7 billion. However, the company's positive results appear to be overshadowed by the broader market concerns, leading to today's significant pre-market decline.