What Happened?
Shares of financial services giant Bank of America (NYSE:BAC) fell 3% in the afternoon session after analyst at HSBC downgraded the stock to "hold" from "buy.". The downgrade was primarily driven by valuation concerns, according to the HSBC analyst. This move comes amid broader market unease, as investors grapple with the potential economic impact of new tariffs on U.S. trade partners announced by President Trump. These tariffs, set to take effect on August 1, are creating uncertainty and weighing on the outlook for the banking sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Bank of America? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Bank of America’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Bank of America is up 6.6% since the beginning of the year, and at $47.23 per share, it is trading close to its 52-week high of $48.93 from July 2025. Investors who bought $1,000 worth of Bank of America’s shares 5 years ago would now be looking at an investment worth $2,044.
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