New York, Feb 27, 2026, 18:28 EST — After-hours
- Bank of America dropped 4.7% at the close, joining a broader slump in U.S. bank stocks heading into the weekend.
- Traders pulled back from risk as fresh concerns over private credit combined with hotter inflation data.
- Coming up: fresh factory numbers to start the week, Friday brings the U.S. jobs report, and after that, the Fed’s March rate call looms.
Bank of America ended Friday down 4.72% at $49.83, losing $2.47 per share as the selloff took a bite out of major banks. Volume hit roughly 77.7 million shares.
The drop cut deeper this time, fueled by a sharp selloff in financials after UK mortgage player Market Financial Solutions blew up—reawakening old anxieties around lending standards. “We’re starting to see these types of things pop up,” said Joe Saluzzi, co-head of equity trading at Themis Trading. Citi analysts flagged concerns after reports emerged about exposure to the troubled lender, writing: “Arranging a loan is very different to retaining that risk.” Reuters
Inflation proved stubborn. U.S. producer prices climbed 0.5% in January, while core producer prices saw a larger 0.8% gain, according to Reuters. That’s giving investors little reason to expect any rate cut from the Fed before mid-year. “We expect the Fed to remain on pause during its upcoming March meeting,” said Ben Ayers, senior economist at Nationwide. The January PCE inflation report, which the Fed relies on, is now slated for March 13. Reuters
U.S. stocks slipped, dragged down by anxieties over AI upheaval, tariffs, and global tensions. “We were reminded there are still some cracks out there,” Ryan Detrick, chief market strategist at Carson Group, said. Reuters
The 10-year U.S. Treasury yield dipped to around 3.95% on Feb. 27. That kind of drop, especially when long yields slip more quickly than banks’ funding costs, can squeeze interest margins for lenders.
Bank of America has put out a pricing supplement for $285 million in fixed-rate callable notes maturing Dec. 3, 2029, another sign of movement in its funding efforts. These notes carry a 4.25% coupon and can be called as early as March 2, 2027—meaning the bank can pay them off ahead of schedule, leaving investors to handle any reinvestment risk.
Equity investors are left wondering if Friday’s selloff was just a brief jolt or the start of a wider rethink on credit risk in money-center banks. So much depends on confidence—confidence in the collateral, the underwriting, and the speed at which any trouble gets exposed.
The risk scenario gets ugly quickly. Should fresh trouble emerge in private-credit or asset-backed lending, banks might run into sharper scrutiny from both investors and regulators. Funding markets don’t take long to react. Prices usually blink first, followed by widening spreads.
Another test lands soon: the U.S. jobs report drops March 6, with investors scanning for any evidence that AI is already weighing on hiring. “There is very little definitive right now,” said Kristina Hooper, chief market strategist at Man Group. The Fed convenes its next policy meeting March 17-18. Reuters
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