What's Going On With Bank Of America (BAC) Shares

Bank of America Corp BAC shares are trading lower by 8.5% to $42.26 since Monday’s open. Shares of banking companies are volatile this week amid President Trump’s decision to implement tariffs.

What To Know: President Donald Trump's firm opposition this week to further trade negotiations is amplifying concerns over economic stability, a crucial element influencing major financial institutions.

This uncertainty weighs on Bank of America, one of the largest U.S. banks, which depends heavily on interest income, accounting for over half of its total revenue.

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On Tuesday, the 10-year Treasury yield declined to 4.16%, potentially squeezing the bank's net interest margin—the gap between lending rates and deposit costs. The 10-year yield has otherwise moved higher to 4.27% Wednesday afternoon.

What Else: Lower yields generally make new loans less profitable, particularly in mortgage and corporate lending. At the same time, trade uncertainty could dampen business confidence, weakening loan demand from commercial clients.

A slowing economy also raises the risk of credit deterioration, potentially forcing Bank of America to bolster its loan loss reserves to cover potential defaults. Higher reserves could further strain the bank's earnings, compounding the challenges presented by declining interest income and trade-related financial instability.

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Investors can gain exposure to BAC by investing in the Financial Select Sector SPDR Fund XLF.

How To Buy BAC Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Bank of America’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, BAC has a 52-week high of $48.08 and a 52-week low of $34.15.