BAC is trading at $53.67 (-3.1%) after CEO Brian Moynihan signaled expectations for lower interest rates, which are expected to pressure the bank's net interest income.
- Moynihan's comments at a financial services conference on February 10 triggered an initial 1.8% decline in after-hours trading.
- Lower interest rates negatively impact net interest income (NII)—the spread between what the bank earns on loans and pays on deposits—which is a critical earnings driver for the bank.
- The decline comes amid broader market uncertainty following weak December retail sales data and the release of the January jobs report.