Bank of America's stock plummeted 5.02% in intraday trading, as the escalating US-China trade war sent shockwaves through the banking sector. The sharp decline came after China announced it would impose 84% tariffs on US goods, up from the previously announced 34%, in response to President Donald Trump's "reciprocal" tariffs on dozens of countries.

The trade war escalation has particularly affected big US banks, with Bank of America joining its peers in a broader market selloff. Investors are concerned about the potential impact on dealmaking and capital markets activity, as tariff-driven uncertainty could hamper business confidence and economic growth. The KBW Bank Index has fallen 15.8% since Trump's initial tariff announcement last week, highlighting the severity of the situation for the banking sector.

As Bank of America prepares to report its quarterly results in the coming days, market participants will be closely watching for any comments from bank executives regarding the economic outlook and potential impacts of the trade war. The focus is likely to shift from profits to how banks are navigating the challenging geopolitical landscape and its effects on their business operations.