Bank of America Stock Slides Amid Dual Shocks Of Recession Fears And Geopolitical Threats
Shares of Bank of America Corp (NYSE:BAC) are falling Friday afternoon, caught in a broad market sell-off driven by a one-two punch of alarming U.S. economic data and an escalation in geopolitical tensions.What To Know: The primary catalyst was a weak July jobs report. The U.S. economy added a mere 73,000 jobs, far below the 190,000 expected, while prior months’ figures were revised down by a combined 258,000. For a bellwether bank like Bank of America, such a clear sign of a cracking labor market signals a looming recession. This directly implies a future of potentially slowing loan demand and, more critically, potentially rising loan defaults from consumers and businesses, threatening the bank’s core profitability.Compounding these economic fears, the market is now aggressively pricing in Federal Reserve rate cuts to combat the slowdown. The 2-year Treasury yield plunged roughly 18 basis points to ...Full story available on Benzinga.com
