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

Bank of America Corp BAC shares are down 2.6% to $40.33 in Monday’s session and have fallen 10% over the past five sessions. The decline comes as U.S. stock futures drop amid growing recession fears and rising trade tensions between the United States and China. The stock may also be moving down after the company announced it alerted customers of a data breach.

The financial sector, which has been under pressure from rising Treasury yields and investor uncertainty, saw significant losses, with Bank of America among the hardest hit.

What To Know: The selloff comes amid remarks from former President Donald Trump, who on Sunday acknowledged the possibility of a recession in 2024 while maintaining confidence in the long-term economic outlook.

Bank of America, one of the largest financial institutions in the U.S., is particularly sensitive to economic fluctuations due to its vast exposure to consumer banking, lending and investment services.

Rising Treasury yields, with the 10-year yield standing at 4.24% and the two-year yield at 3.94%, put pressure on the bank's fixed-income investments, potentially squeezing profit margins.

What Else: Additionally, the recent mixed economic data—including a weaker-than-expected jobs report and a surprise rise in the unemployment rate to 4.1%—added to concerns about slowing economic growth and its repercussions for financial institutions.

Compounding the negative sentiment, China's recent decision to impose retaliatory tariffs on U.S. agricultural goods, including soybeans, added another layer of uncertainty.

Bank of America, like other major banks, has exposure to global markets and trade activity, and any prolonged trade tensions could further dampen economic growth, impacting corporate borrowing and investment banking revenues.

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 BAC'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.

BACBank of America Corp

$40.27-2.74%