Why Credit Card Company Stocks Are Tanking

"The markets are sending a message about coronavirus: The recession risk is real."

So read one of the lead stories on The Washington Post this morning, and judging from the market's reaction to the latest novel coronavirus news -- the S&P 500 is down 6%, the Dow is down 6.4% -- investors are taking this warning to heart. There's a very real risk of a recession around the corner, and recessions aren't good for economies, for spending, or for credit card stocks.

Shares of Mastercard (NYSE: MA), Visa (NYSE: V), American Express (NYSE: AXP), Discover (NYSE: DFS), and Capital One Financial (NYSE: COF) -- basically, any stock that makes you think "credit cards" when you hear its name -- fell 8%-10% this morning. As of 1 p.m. EDT, Mastercard remains down 4.8%, and Visa an only slightly less worrisome 3.7%. American Express is off 7.8%, Discover is 9.7% lower, and Capital One -- traditionally the card that targets consumers with weaker credit scores -- is down a solid 10%.

Source Fool.com