Bank of America Stock Plunges 3.23% Amid Policy Uncertainties

On April 9, 2025, Bank of America's stock experienced a significant drop of 3.23% in pre-market trading, reflecting the market's response to various economic and policy uncertainties.

Bank of America has recently adjusted its price forecasts for copper and aluminum, citing increased market volatility due to ongoing trade tensions and policy uncertainties. The bank's strategists noted that changes in trade rules and policies are likely to exacerbate market volatility, leading to a downward revision of its 2025 copper price forecast by 6% to $8,867 per ton. This adjustment comes amid concerns over global economic growth slowdown and potential dollar strength, which could impact demand for these metals.

Analysts have expressed mixed sentiments about Bank of America's stock. Some analysts, such as Betsy Graseck from Morgan Stanley, have upgraded the stock to "overweight," citing its defensive qualities and attractive valuation. Graseck noted that despite the market's concerns over the Federal Reserve's rate cuts and the flattening yield curve, Bank of America's stock remains undervalued with a price-to-earnings ratio of 8 times its 2026 earnings per share estimate. However, other analysts have expressed caution, pointing to the bank's reliance on investment banking revenue, which is more sensitive to economic downturns and market volatility.

Bank of America's recent financial performance has also been a topic of discussion. The bank is set to report its first-quarter earnings on April 15, 2025, and analysts are closely watching for any signs of improvement in its financial metrics. The bank's earnings per share are expected to show significant improvement, with forecasts indicating a potential EPS of $3.65 for the fiscal year 2025. However, the bank's stock has faced volatility in recent months, with significant declines in early 2025 due to market turmoil and economic concerns.