Bank of America Corp (NYSE:BAC) shares are trading lower Tuesday afternoon as a financials sell-off has deepened on private-credit panic and shifting U.S. tariff policy. Here’s what investors need to know.
- Bank of America stock is volatile. Where are BAC shares going?
Private Credit Sell-Off Rattles Financials
Pressure began late last week after Blue Owl Capital said it would sell roughly $1.4 billion of loans from a private credit fund to meet redemption demands and unwind a planned merger.
Forced sales at book value stoked fears that similar vehicles may be over-promising liquidity and could be forced to crystallize losses as investors rush for the exits. The news has slammed alternative-asset managers and pulled broader financials lower this week.
Bank Of America Exposure Risks
For Bank of America, the headlines hit several nerves. With one of Wall Street’s largest balance sheets and a significant leveraged-finance franchise, the bank is a key conduit between institutional investors and private borrowers.
The bank lends to private-credit funds, arranges financing for sponsor-backed deals and sells private-market products through its Merrill wealth arm.
If valuations on private loans reset lower, investors worry that BAC could face slower deal flow, weaker underwriting and advisory fees and higher capital requirements on exposures to alternative-credit structures. Wealth clients holding gated funds heighten litigation and reputational risk.
Tariff Uncertainty Clouds Growth Outlook
Markets are also digesting the Supreme Court’s decision to strike down key Trump-era tariffs and the administration’s search for replacements.
The policy uncertainty feeds risk-off sentiment and dampens expectations for corporate investment and loan demand. In that environment, economically sensitive lenders like Bank of America see earnings multiples compress.
Technical Weakness Pressures BAC Shares
The stock is currently trading 5.1% below its 20-day simple moving average (SMA) and 4.4% below its 100-day SMA, indicating a bearish short-term trend.
Over the past 12 months, shares have increased 14.40%, and they are positioned closer to their 52-week lows than highs, suggesting some weakness in the current price action.
The RSI is at 36.78, which is considered neutral territory, while the MACD shows a value of -0.4157, below its signal line at -0.1588, indicating bearish pressure on the stock.
This combination of indicators suggests that while the stock is not in oversold territory, the momentum remains negative. Key support and resistance levels are critical for traders to watch:
- Key Resistance: $57.00
- Key Support: $50.50
Benzinga Edge Rankings
Benzinga Edge data show Bank of America holds a Momentum score of 53.55 and a Quality score of 42.15, with its short- and medium-term price trends flagged bearish and only the long-term trend marked bullish.
BAC Shares Edge Lower Tuesday
BAC Price Action: Bank of America shares were down 0.82% at $50.65 at the time of publication on Tuesday, according to Benzinga Pro data.
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