Bank of America Drops 3.13% Amid Tariff Fears

On April 3, 2025, Bank of America's stock price dropped by 3.13% in pre-market trading, reflecting investor concerns and market volatility.

Analysts at Bank of America have expressed concerns about the potential impact of tariffs on the automotive industry. John Murphy, a Bank of America analyst, warned that the imposition of tariffs by the Trump administration could lead to a significant decrease in demand for automobiles, potentially resulting in production halts. Murphy's analysis suggests that if manufacturers pass on the full cost of tariffs to consumers, demand could drop by approximately 20%, equating to a loss of 3.2 million vehicles.

The market's reaction to the potential tariffs has been one of heightened uncertainty, with investors closely monitoring the situation. The anticipation of tariffs has already led to a decline in major stock indices, including the S&P 500 and Nasdaq 100. This uncertainty has prompted many investors to adopt a cautious approach, leading to increased selling pressure.

Bank of America's Sell Side Indicator (SSI) experienced a significant decrease in March, falling by 56 basis points to 56.1%. This marks the largest month-over-month decline in over two years, indicating a shift in market sentiment towards a more bearish outlook.