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Bank of America (BAC) shares recently suffered their steepest one-day drop since April 2025 after CEO Brian Moynihan warned that third-quarter investment banking fees could fall at least 10% while sales and trading revenue may be flat from a year ago. BAC stock fell 5.1% to $59.47 on Sept. 14, while the S&P 500 banking index dropped 2.7%.
Big banks tend to be cyclical, and this guidance simply shows a slower period for markets. In many ways, the market reaction was “overdone,” as Morgan Stanley noted. The stock trades near fair value on its usual metrics, and the selloff feels like a short-term blip. For long-term investors, Bank of America’s core loan and deposit growth, higher rates driving net interest income, and strong capital levels remain reassuring.
