Bank of America Corp Performing Well In The Financial Market

Bank of America is going forward with a positive momentum which would also result in gaining their stocks

Bank of America Corp. is performing quite well in the market. In fact, the financial stocks were the main highlights in last day’s trade and were named as the biggest gainers of the day. The stocks of various big banks were being traded at a green whereas others gained when the market closed yesterday. But there was Federal Reserve which announced a decision regarding interest rate matter which affected the market to some extent. A few stocks in United States significantly increased in the S&P 500 Index, Nasdaq, and Dow Jones Industrial Average.

However the sudden change did affect majority of the stocks but financial stocks managed to sustain in the market. Bank of America was also in the list of the biggest gainers last day where it added 5 percent more to its values. Not only yesterday but the company managed to keep up the good performance when the markets opened today. Currently, the BAC stocks have peaked and are trading at a high of $17.44. Furthermore, it is believed that more than 147 million shares were traded.  The 30 day average of shares trading is around 86 million.

Moreover, the stocks significantly increased after the announcement of Federal Reserve’s decision regarding interest rate matter. However the authority has planned to stay put on the interstate situation for the time being after hearing the decision of the Federal Open Market Committee.  According to a source, “Counting on the expansion of the global economy, Federal Reserve seeks additional signs of strengths in the economy before introducing a hike while preventing any global risks affect US economy.”

It is known that banks and financial institutions would be in favor of the Federal Reserve’s decision to increase the interest rates in the coming times. Increased rates will benefit the banks to improve their net interest income as well as net interest margin. However yesterday it was decided that the interest rates would not increase and it will be kept on hold. This has resulted in the banks and investors losing interest in the deal.

Analysts believe that with the momentum Bank of America is doing its business right now it will likely take the stocks of the business higher than usual. Currently, the banks are focused on the meeting to be held in December that would decide if the Federal Reserve wants to increase the interest rate or not. Most likely, rates will increase.