Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) shares are trading lower Tuesday afternoon. Shares of several bank and financial service stocks are falling after S&P Global Ratings downgraded several regional banks.
Downgrades of multiple regional banks by S&P Global Ratings could signal challenges within the broader banking sector. If several banks in the same sector face credit rating downgrades, it might suggest a sector-wide issue, such as financial instability, economic uncertainty or credit quality concerns.
This sentiment could lead investors to worry about the health of the sector as a whole, including larger banks like Bank of America and Wells Fargo.
What Happened?
S&P Global Ratings has cast a spotlight on the challenges faced by several U.S. regional banks, resulting in a series of downgrades that have reverberated through the financial sector.
According to the renowned rating agency, the Federal Reserve’s tight grip on monetary policy is now putting a strain on the funding, liquidity, and revenue of many U.S. banks. Among the banks affected by the downgrades...Read More
According to data from Benzinga Pro:
- BAC has a 52-week high of $38.60 and a 52-week low of $26.32
- WFC has a 52-week high of $48.84 and a 52-week low of $35.35
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