Bank of America fell 5.14% after CEO Brian Moynihan warned investors to expect a pullback in investment banking fees and trading performance in Q3, with fees declining at least 10% in consulting and trading businesses. The broader financial sector also declined, with JPMorgan Chase and Wells Fargo both down over 1%, amid higher Treasury yields and weaker dealmaking activity.
Bank of America expects investment banking fees to decline more than 10% in the third quarter compared to the year-earlier period, with trading revenue roughly flat, CEO Brian Moynihan said Monday. This marks a sharp reversal from a blockbuster second quarter and signals potential weakness in Wall Street's advisory and trading businesses. The bank's shares fell 5% following the guidance.