We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where Bank of America Corporation (NYSE:BAC) stands against the other stocks.
Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.
The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.
Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.
The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.
To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
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Bank of America Corporation (NYSE:BAC)
Bank of America Corporation (NYSE:BAC) dropped its share prices by 6.34 percent on Tuesday—a second straight day—as investor sentiment was weighed down by its potential risks from the growing trade tensions between the US and its largest trading partners.
Bank of America Corporation (NYSE:BAC) traded in line with its counterparts on Tuesday, albeit it posted the largest losses among its peers.
With the economies throwing tariff retaliations, investors moved to park funds for now to mitigate risks. With Bank of America Corporation (NYSE:BAC) set to release its next earnings results in April next month, investors will be looking out for any cues on its provisions for credit losses, which could go higher with higher taxes now in place.
PCLs are funds that money lenders keep and are treated as their own expense to absorb delinquent debts that can no longer be recovered.
Overall BAC ranks 10th on our list of Tuesday’s worst performers. While we acknowledge the potential of BAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAC but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.