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Visa’s Sharp 5% Plunge Sends Jitters Through Wall Street, But After-Hours Rebound Offers Hope for Monday

NEW YORK – Investor sentiment heading into the weekend is decidedly mixed after financial titan Visa Inc. (NYSE: V) experienced a sharp sell-off during Thursday’s trading session, only to show tentative signs of life in after-hours trading. The dramatic move in one of the market’s key bellwethers has left traders questioning whether Monday will bring continued pain or a potential rebound.

Visa closed the main trading day at

18.48, or 4.98%. The stock opened at $361.50 and traded as high as $363.01 before succumbing to heavy selling pressure that pushed it to a low of $345.00. This steep decline, well below the previous day’s close of $371.34, points to strong bearish sentiment that could spill over into the broader market. As a major component of the S&P 500 and the Dow Jones Industrial Average, a single-day loss of this magnitude in a company like Visa is often a red flag for market-wide anxiety.

 

The Case for a Downward Trend on Monday:

The primary argument for a bearish open on Monday is the sheer force of Thursday’s sell-off. A nearly 5% drop in a blue-chip stock suggests that investors were spooked by an underlying factor, whether it be sector-specific news, broader economic concerns, or a simple rush to take profits near its 52-week high of $375.51. This negative momentum could easily carry over the weekend, leading to further selling when the market reopens.

The Glimmer of Hope for a Green Monday:

However, the picture is not entirely bleak. In after-hours trading, Visa’s stock clawed back a small portion of its losses, rising $0.75 (0.21%) to $353.60. While modest, this positive movement is significant. It suggests that some investors and “bargain hunters” viewed the 5% drop as an overreaction and a buying opportunity. The intraday chart also shows that after hitting its low, the stock stabilized and traded sideways for the latter half of the day, indicating that the most intense selling pressure may have subsided.

Outlook for Monday:

The market’s direction on Monday will likely hinge on which narrative wins out. Will traders focus on the deep, concerning cut from the main session, or will they take their cue from the small but optimistic after-hours recovery?

Prediction: The conflicting signals suggest a volatile and uncertain open on Monday. Pre-market futures will be a critical indicator to watch. It is likely the market will open relatively flat or slightly down, as investors pause to assess the sentiment after the weekend. An initial battle is expected between the bears, who will try to push the market lower based on Thursday’s trend, and the bulls, who may see the dip as a chance to “buy low.” The first hour of trading on Monday will be crucial in setting the tone for the rest of the week.

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