Overnight in the US: BoA sheds 20% as financials routed

clock

Bank of America's share price fell by 20% as US financials were routed in Monday trading over growth fears and S&P's downgrade of the US credit rating.

Publically-traded banks and other financials slumped on the day government lenders Fannie Mae and Freddie Mac had their credit ratings cut to AA+ by S&P, in line with Friday's move to downgrade the US itself. Bank of America closed down 20.1% at $6.51 amid a wider market sell-off which saw the S&P 500 tumble 6.66% to 1,119. Citigroup fell by 16.4% to $27.95, Morgan Stanley fell 14.5% to $17.12 and JPMorgan Chase dropped 9.4% to 34.06. Goldman Sachs was down 6% at $117.66. Bailed-out US insurer AIG filed a lawsuit against BofA yesterday over $10bn worth of losses on mortgage-backed ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Five years on from Covid: What's next for markets?

Five years on from Covid: What's next for markets?

It is now five years since the start of the UK’s Covid lockdown. Since then, we have seen considerable market and geopolitical-related change. Here, William Marshall looks back over the past five years and also explores what we might expect from markets...

William Marshall
clock 06 May 2025 • 4 min read
Gilt yields fall after Donald Trump backs down in 'tariff war'

Gilt yields fall after Donald Trump backs down in 'tariff war'

US president pauses most additional tariffs

Jonathan Stapleton
clock 10 April 2025 • 2 min read
Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read