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What's Going On With Bank of America (BAC) Shares
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What's Going On With Bank of America (BAC) Shares
Mar 4, 2025 11:40 AM

Bank of America Corp ( BAC ) shares are trading lower by 5.7% to $42.95 Tuesday afternoon as fears surrounding U.S. tariffs on Mexico and Canada added to broader market uncertainty.

What To Know: President Donald Trump's firm stance against further trade negotiations has heightened concerns about economic growth, a key factor affecting the bank's lending and investment operations.

As one of the largest U.S. banks, Bank of America ( BAC ) relies heavily on interest income, which makes up over 50% of its total revenue. With the 10-year Treasury yield dropping to 4.16% Tuesday, the bank faces a potential squeeze on its net interest margin, the spread between lending rates and deposit costs.

Lower yields typically reduce the profitability of new loans, especially in the mortgage and corporate lending segments. Additionally, trade disruptions could weaken business confidence, leading to slower loan demand from commercial clients.

Additionally, a weaker economy may also increase credit risk, potentially forcing Bank of America ( BAC ) to raise loan loss reserves, further pressuring earnings.

Read Also: Investors Shouldn’t ‘Run To The Hills’ Over Tariffs: Dan Ives Points To 8 AI Stocks ‘To Own’

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

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 ) 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.

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