Bank of America Corp ( BAC ) shares are trading higher by 0.85% to $45.43 during Tuesday’s session. The stock is marginally higher following the release of softer-than-expected December Producer Price Index (PPI) data, as investors potentially viewed the report as a sign that inflationary pressures might be easing without requiring aggressive Federal Reserve intervention.

What To Know: As a major financial institution, Bank of America ( BAC ) is particularly sensitive to interest rate dynamics, given its reliance on net interest income—profits derived from the spread between interest earned on loans and interest paid on deposits.

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The deceleration in monthly core PPI and the weaker annual figures suggest that inflation may be stabilizing, potentially reducing the need for the Federal Reserve to raise rates.

What Else: Lower-than-anticipated rate hikes could benefit Bank of America ( BAC ) by supporting loan demand and keeping borrowing costs manageable for its retail and commercial clients. Moreover, reduced inflation pressures could mitigate concerns about credit deterioration in the bank’s loan portfolio, as consumers and businesses face less financial strain.

Bank of America ( BAC ) also stands to gain from continued economic stability, as a less hawkish Fed reduces the risk of a hard landing that could curb credit growth and capital markets activity.

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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 $31.27.