NEW YORK, March 3, 2026, 14:22 EST — Regular session
- Citi shares jolted at the open, then leveled off, with investors reacting to fresh Middle East tensions and their ripple effects across markets.
- Some of its Middle East employees were instructed to work remotely, with the bank noting it has contingency plans ready.
- Traders have their eyes on Friday’s U.S. jobs report, with the Fed’s mid-March meeting also on the radar for the next rate clue.
Citigroup shares steadied Tuesday, holding near flat after an early slide of more than 4%. Investors weighed new Middle East risks following the bank’s move a day earlier to have some Gulf-based employees work remotely.
Energy prices have jumped since the conflict began, stirring fresh inflation concerns. That’s significant, since higher rates could stick around, with ripple effects for banks—impacting everything from lending appetite to trading activity.
There’s a second ripple effect. If war spreads, travel gets tangled up, cross-border deals get bogged down, and capital raising can go sideways—right in the middle of Citi’s key business lines during steady markets.
Citi traded at $111.49 in the afternoon, up just 0.04%. Shares had opened at $107.41 and dropped to $106.76 at their lowest. JPMorgan picked up around 1%; Bank of America tacked on 0.7%. Wells Fargo showed a 0.8% gain. The Financial Select Sector SPDR ETF rose 0.1%.
Stocks in the U.S. slipped across the board as traders pulled back from risk following new developments out of Iran. “Higher energy prices represent the primary channel through which geopolitical tensions feed into inflation and growth expectations,” said Phil Blancato, chief market strategist at Osaic. 1
Employees at Citi and JPMorgan in the Middle East have been told to work remotely due to rising tensions, according to sources who spoke to Reuters on Monday. Citigroup said, “We are continuing to take measures to help keep our employees and their families safe,” and noted that contingency plans are in place to maintain client service. 2
Crude’s steady climb on Tuesday put a fresh spin on rate forecasts. Traders dialed back wagers on imminent Fed easing—futures now price in just a 31% shot at a June quarter-point cut, down from last week’s odds, CME FedWatch Tool data show. 3
Citi has submitted a preliminary pricing supplement for callable zero-coupon notes set to mature on March 9, 2038. The notes don’t offer any periodic interest; instead, they accrete in value, ultimately reaching $1,870 for every $1,000 in principal when they come due, according to the filing. 4
The more immediate wildcard for Citi isn’t the note program. It’s the risk that the geopolitical shock morphs into a stretch of weaker growth and heavier inflation—a scenario that could drive up funding costs, chill risk appetite, and cloud prospects for deal fees.
The U.S. February jobs report lands Friday at 8:30 a.m. ET, giving markets an important look at wage trends and labor demand. 5
Next up, attention shifts to the Federal Reserve’s March 17-18 meeting, where traders are watching for any tweak in the Fed’s language on inflation risks related to energy prices. 6
