New York, March 2, 2026, 07:02 EST — Premarket
- Bank of America was down more than 2% in premarket, adding to last week’s sharp drop.
- Oil jumped after fresh Middle East tensions, dragging U.S. equity futures lower and driving volatility higher.
- The bank said it intends to redeem €1.75 billion of floating-rate senior notes on March 10.
Shares of Bank of America slid more than 2% in premarket trading Monday, following Wall Street futures lower as oil prices spiked on rising Iran-related tensions. The VIX, often called Wall Street’s fear gauge, climbed to its highest mark in three months. “There’s plenty of scope for more downside” if the situation worsens, said Chris Beauchamp, IG’s chief market analyst. Reuters
Stocks dropped at the open, after a turbulent end to last week left banks jittery about new growth concerns. Bank of America closed the last session down 4.72% at $49.83.
Why it matters now: Banks find themselves squeezed as rates, growth, and risk tolerance cross paths. A sudden jump in crude prices could leave inflation lingering, muddying the Fed’s outlook. On the flip side, if things slow down, loan losses become a bigger concern. Higher yields might boost net interest income — essentially what banks make from lending versus what they pay depositors — but that buffer erodes fast if defaults start to climb.
Bank of America is moving to redeem all €1.75 billion of its floating-rate senior notes due March 10, 2027. The repurchase is lined up for March 10 this year, the company said. Investors will get €1,000 per €1,000 in principal, plus any interest accrued but not yet paid.
Early Monday, Brent crude surged 8.3% to near $78.5 a barrel. S&P 500 futures, meanwhile, retreated about 1% as traders weighed the risk of longer-lasting energy shocks. “Historically markets have mostly shrugged off isolated conflicts in the Middle East” unless the turmoil spreads further, Michael Field, chief European equity strategist at Morningstar, said to Reuters. Reuters
Bank of America wasn’t alone under pressure. U.S. bank stocks logged their steepest one-day drop since April on Friday, with the KBW bank index tumbling 4.9%. Goldman Sachs sank 7.5%. Both Wells Fargo and Morgan Stanley slipped around 6%, the Financial Times reported.
Bank of America tends to track the curve and data, though both stumbled over the last two sessions. Volatility can hand trading desks a boost, but more often it crops up right when financial conditions tighten and loan growth pulls back.
There are arguments on both sides here. A fast drop in oil and calmer trading could throw a lifeline to struggling bank stocks. Still, if oil stays firm but growth jitters set in, banks might face fresh selling as investors worry about rising consumer strain and the potential for more trouble in commercial loans.
The U.S. wraps up a busy stretch of data with February’s jobs report, set for release Friday, March 6 at 8:30 a.m. ET, the Bureau of Labor Statistics says. Yields sometimes spike fast on unexpected jobs or wage numbers—bank stocks often move right behind them, sometimes in just minutes.
Bank of America’s co-president Dean Athanasia will speak at RBC Capital Markets’ Global Financial Institutions Conference on March 10, according to the bank’s investor relations site.
BAC is back in the spotlight as it tries to recover from last week’s drop, even with crude and yields stealing much of the attention ahead of the U.S. open. Traders are already zeroing in on the payrolls report due March 6, looking to it as the next key move.
Related articles: NYSE:BAC
