Bank of America Stock Plunges 3.28% Amid Tariff Fears

On April 4, 2025, Bank of America's stock price dropped by 3.28% in pre-market trading, reflecting a significant decline in investor sentiment.

The recent downward adjustment of Bank of America's target price by Morgan Stanley from $49.50 to $43.50 has raised concerns among investors. This move, along with similar adjustments for other major banks, indicates a broader pessimism in the financial sector.

Economists have warned that the newly imposed tariffs could slow down the global economy, increasing the risk of a recession and raising living costs for average American families. This economic uncertainty has led to a decrease in demand for loans and an increase in delinquencies, negatively impacting banks' profitability.

The announcement of sweeping tariffs by President Trump has further exacerbated the situation, with bank stocks experiencing sharp declines. The tariffs are expected to hurt loan growth and quality, adding to the financial sector's woes.

Despite these challenges, Bank of America maintains an average rating of overweight with a mean price target of $51.40, according to analysts polled by FactSet. However, the current market conditions and economic uncertainties pose significant risks to the bank's future performance.