What's Going On With Bank Of America (BAC) And Wells Fargo (WFC) Shares

Bank of America Corp BAC and Wells Fargo & Co WFC shares are trading lower Tuesday afternoon. Shares of banking and financial services stocks are trading lower after a Fitch analyst said Fitch could downgrade additional lenders.

When a prominent credit rating agency like Fitch suggests potential downgrades for lenders, it raises concerns about the financial health of the banking sector as a whole. This can trigger negative sentiment among investors, leading to selling pressure on stocks across the sector, including Bank of America and Wells Fargo.

The possibility of downgrades also indicates increased credit risk for financial institutions. Investors may worry about the impact of potential downgrades on the lenders' borrowing costs, profitability, and overall business operations. This risk perception can lead to investors reassessing their positions and divesting from these stocks.

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According to data from Benzinga Pro:

• BAC has a 52-week high of $38.60 and a 52-week low of $26.32
• WFC has a 52-week high of $48.84 and a 52-week low of $35.35