Spanish lender Banco Santander has eclipsed Swiss giant UBS as continental Europe’s largest bank by market capitalization, as U.S. tariffs ripple through the region’s bruised banking sector.

UBS — whose share took a deep tumble after the April 2 announcement of U.S. President Donald Trump’s baseline and reciprocal duties on Washington’s trade counterparties — had a market cap of 79.5 Swiss francs ($97.23 billion) as of the Wednesday close, according to FactSet data, with Banco Santander at 91.3 billion euros ($103.78 billion).

The two banks’ shares have diverged over recent months, with the Swiss lender shedding 17.2% in the year to date, while Banco Santander has gained nearly 35%, according to LSEG data.

Both banks, along with Europe’s broader banking sector, have suffered since the imposition of the White House’s protectionist trade policies, given the shrinking growth outlook for tariff-struck European countries and the prospect of a recession in the U.S.

Washington imposed 20% tariffs on imports from the European Union, but has lowered them to 10% under a 90-day pause announced by Trump on April 9.

Switzerland — which is not a member of the EU — faces a steeper 31% levy after the pause lifts and the Trump administration has also threatened additional duties on imported drugs. This could deliver a blow to the Swiss pharmaceutical industry that “grew robustly” in the fourth quarter and “contributed significantly” to the country’s exports over the period.

More broadly, European Union banks received a boost from the announcement of the European Union’s ReArm initiative in March, which is set to loosen regional fiscal rules and trigger further borrowing activity to boost defense spending.

Banco Santander is the fifth-largest auto lender in the country and is expanding through a recent partnership with telecom giant Verizon. Nevertheless, it only logged around 9% of its total profits for 2024 Stateside.

The U.S. is, meanwhile, a key market for UBS’ lucrative core global wealth management division, with roughly half of the Swiss lender’s invested assets concentrated in the broader Americas region last year, according to its annual report.

UBS’ outlook has also been clouded by a shroud of uncertainty surrounding potential new — and steeper — capital requirements from Swiss authorities. This follows its expansion in the wake of absorbing collapsed domestic peer Credit Suisse, from which it also inherited a significant U.S. presence. The lender expects to receive further clarity on these guidelines next month.  

UBS’ profitability could also be impacted by a strong Swiss franc — historically a safe haven asset during market turmoil — which has appreciated by roughly 8% against the U.S. dollar since the imposition of the latest tariffs.

Switzerland’s appreciating currency — whose strength local trade groups had flagged as damaging to exports even before tariffs came into effect — could, along with depressed inflation in the country, see the Swiss National Bank make further defensive cuts to interest rates, which were already reduced to just 0.25% in March.

In comparison, the European Central Bank is also widely expected to trim its key deposit facility rate by a quarter point when it meets later on Thursday, although this will take it to 2.25%.

The potential interest rate cut would take place after the ECB said in March that its monetary policy was “becoming meaningfully less restrictive” — in a signal some analysts interpreted as indicating restraint when it comes to lowering rates further.

Declines in national interest rates typically weigh on local lenders’ net interest income revenues from loans.

Bill Ackman’s Pershing Square took a sizable stake in Hertz, the rental-car company that exited from bankruptcy four years ago, sparking a big rally.

Shares of Hertz surged 56% on Wednesday after a regulatory filing revealed Pershing Square had built a 4.1% position as of the end of 2024. Pershing has significantly increased the position — to 19.8% — through shares and swaps, becoming Hertz’ second largest shareholder, a person familiar with the matter told CNBC’s Scott Wapner.

The person said Ackman’s investment firm received an exemption from the SEC to delay the filing of the position until Wednesday, which allowed it to accumulate substantially more shares.

Hertz has been a troubled company for much of the past decade, including bankruptcy during the coronavirus pandemic in 2020.

Following its emergence from Chapter 11 bankruptcy in 2021, the company bet heavy on all-electric vehicles, specifically Teslas, which cost the company billions following a significant decline in their residual values.

When reporting its 2024 fourth-quarter earnings in February, it revealed a $2.9 billion loss for the year, which included a $245 million loss on the sale of EVs during the fourth quarter.

“Fast Money” trader Tim Seymour wants to help investors avoid common money traps that could leave them exposed to losses, particularly in a volatile market.

So, he’s out with a shortlist of four tips to deliver some peace of mind when things are going south.

Tip No. 1: Don’t have more money in the market than you can stomach.

Whether it is margin calls or anxiety about losing money you can’t afford to lose, bad decisions are often made during desperation.

Tip No. 2: Don’t hope that you get back to breakeven.

If you’re only holding a long position because you don’t want to lose money on the trade, you risk losing more.

Bottom line: Own a stock based on merit, not hope.

Tip No. 3: Don’t assume yesterday’s investment rational will work tomorrow.

Ask yourself, “Has something changed in the fundamental case or is it a case of market volatility?” If something changed, make adjustments.

Tip No. 4: Don’t cut your flowers and keep your weeds.

Often, the highest quality companies will outperform in a down market. Bad position? Circle back to No. 2.