New York, February 24, 2026, 07:01 ET — Premarket
- Bank stocks are looking to steady following a broad selloff.
- Tariff headlines are catching traders’ attention, while Treasuries lurch in the background.
- Risk appetite might get a shake-up later this week, with both major macro data and earnings events on the calendar.
Shares of Bank of America (BAC.N) hovered near $51.08 ahead of the open, barely budging after dropping 3.75% to finish at $51.07 the prior session. (Public)
This shift packs a punch—large banks often stand in for bets on U.S. growth whenever policy news lands. Their shares typically react to shifting rate outlooks and investor risk appetite.
At Bank of America, eyes are on two things: loan demand and credit. The lender’s fortunes are tied to net interest income—the difference between its loan earnings and deposit costs. That margin can shrink quickly as rate bets shift.
Large banks took a hit Monday—shares of JPMorgan Chase (JPM.N), Wells Fargo (WFC.N), and Morgan Stanley (MS.N) each slipped roughly 4% as Wall Street dropped. (MarketWatch)
KBW Regional Banking Index (.KRX) tumbled 4.26% Monday as investors swiftly exited rate-sensitive bank stocks. (Reuters)
Treasury markets swung between gains and losses Monday, investors wrestling with rate path uncertainties and how Washington’s funding plans will shake out. The 10-year yield hovered near 4.071%, while the 30-year ticked up to roughly 4.716%. Dan Siluk of Janus Henderson flagged refunding-driven issuance as a possible driver of “steepening pressure at the long end of the curve.” (Reuters)
BofA Finance LLC, which has backing from Bank of America, put out a preliminary term sheet for autocallable contingent coupon barrier notes tracking the weakest performer among Advanced Micro Devices, Broadcom, and Costco. The notes carry a stated maturity set for March 2028, according to a recent company filing.
But there’s a larger headache for bank bulls: another round of volatility could bleed into credit markets. Morningstar DBRS flagged that private credit quality keeps sliding this year, with downgrades in February outnumbering upgrades by more than three to one and defaults sitting at 4%. “Companies that invested were able to complete the transition and improve earnings later,” Michael Dimler told Reuters, referencing how the agency is keeping tabs on AI disruption risk in the software sector. (Reuters)
BAC’s trading pattern looks tied to the sector, rather than any unique narrative. A curve move or new growth jitters, and routine filings or product news barely get noticed.
U.S. stock index futures ticked up early Tuesday, recovering a bit after Monday’s drop, with investors still uneasy about tariffs and lingering questions tied to AI. “The lack of clarity regarding their duration and scope keeps volatility elevated,” said Antonio Di Giacomo, senior market analyst at XS.com. Market focus also lands on President Donald Trump’s speech to Congress later Tuesday, several Fed officials set to speak, and Nvidia’s results, which are expected after Wednesday’s close. (Reuters)
