Bank of America shares faced the steepest decline after the institution was hit with a $1.2 billion fine for compliance shortcomings, a penalty that significantly eroded its quarterly earnings. The bank, which ranks as the second-largest in the U.S. by assets, struggled to maintain momentum in the face of these legal costs.

Morgan Stanley experienced a similar downturn as its fixed-income trading revenue fell short of expectations. The firm’s performance mirrored concerns across Wall Street regarding Treasury market volatility, which continues to impact profitability for major trading desks. In contrast, BlackRock provided a rare point of stability; the fund-management giant reported a surge in quarterly revenue and adjusted earnings, pushing its total assets under management to $15.5 trillion, a 15% increase that left its share price largely unchanged.