New York, Feb 27, 2026, 12:06 (EST) — Regular session
- Bank of America shares dropped, joining a broader pullback in U.S. financials as risk appetite thinned toward month-end.
- Investors trimmed expectations for near-term rate cuts after a stronger-than-expected producer-price report.
- March inflation figures and the Fed’s mid-March policy meeting are now in focus.
Bank of America Corporation (BAC) dropped 4.6% to $49.90 as of 11:46 a.m. ET Friday, deepening losses across the banking sector. Roughly 20.5 million shares changed hands—well under the usual 39 million daily average.
Wall Street’s main indexes slipped, with financials dragging the S&P 500 and Nasdaq toward what looks like their sharpest monthly fall since March 2025. “There are a lot of questions around AI and the future of tech,” said Anthi Tsouvali, multi-asset strategist at UBS Global Wealth Management. Reuters
A higher-than-expected rise in the producer price index (PPI) put pressure on sentiment. January’s PPI climbed 0.5%, outpacing the 0.3% increase economists surveyed by Reuters had penciled in. “We expect the Fed to remain on pause during its upcoming March meeting,” said Ben Ayers, senior economist at Nationwide. Reuters
The 10-year Treasury yield dipped under 4% at one point, landing near 3.98%—levels not seen since late November.
This is significant for banks. When long-term yields fall, net interest margin gets pinched—the difference between what they make from loans and what they pay out on deposits narrows. And with deposit competition still intense, that squeeze doesn’t let up.
Wells Fargo slipped 5.6%. Citigroup dropped 4.8% by midday, joining the broader selloff in big banks.
The collapse of UK mortgage lender Market Financial Solutions has thrown credit risk back into focus, putting certain lenders and private credit funds at risk of losses.
Some relief is showing up for consumers as borrowing costs slip. The average 30-year fixed mortgage rate dropped to 5.98% this week, and that drop “could be the nudge some buyers and current homeowners have been waiting for,” according to Matt Vernon, who heads consumer lending at Bank of America. Mortgage applications at the bank are running almost 22% higher than a year ago, he said. Reuters
In another move, the London Stock Exchange posted that Bank of America has issued a supplementary prospectus for its $85 billion euro medium-term note program.
The cross-currents aren’t doing investors any favors right now. Tariffs stoke inflation? The Fed holds rates higher, longer. Should growth buckle, though, loan losses take center stage. In both cases, bank multiples face pressure.
Rate traders now have their sights set on the Fed’s March 17-18 meeting, where the policy decision lands March 18.
The next PCE price index drops March 13, straight from the Bureau of Economic Analysis — a key inflation indicator for the Fed. Over at Bank of America, investors eye March 6 for the dividend record date, with payouts landing March 27.
