Bank of America shares fell 2.47% to $52.52 following internal reports of a widening economic spending gap and a significant legal setback.
- The Bank of America Institute reported a "K-shaped economy" where spending growth for lower-income households slowed to 0.3%, significantly trailing the 2.5% growth seen in wealthy households.
- A federal judge ruled that a lawsuit alleging the bank's "reckless disregard" in the Jeffrey Epstein case may proceed, increasing legal risk.
- The combination of macroeconomic concerns and legal developments triggered a surge in bearish options activity.