BUZZ-US big bank stocks extend decline as BofA forecast weakens sentiment
XLF•Forecast and market concerns weigh on sentiment
On Monday, BofA CEO projected Q3 investment banking fees at $1.6 billion to $1.8 billion, with flat sales and trading revenue.
Wall Street expects $2.04 billion in investment banking fees, according to S&P Global Visible Alpha.
"The BofA revelation ... is causing some jitters. The mega-IPO environment did not carry over in 3Q, and weekend concerns about the pace of AI development may slow it further" — Stephen Biggar, director of financial services research at Argus Research.
Biggar also said the recent steep rise in the benchmark 10-year Treasury yield raises concerns about slower loan growth and credit quality.
Big U.S. banks extend declines after BofA forecast
Selloff in shares of big U.S. banks continued on Tuesday, following Bank of America's weak Q3 investment banking forecast.
Goldman Sachs fell 2.5%, JPMorgan Chase lost 1.4%, Bank of America ticked down 0.4%, Morgan Stanley fell 1.8%, and Citigroup dipped 0.5%.
The S&P 500 Banks index declined 0.7%.
