US large-cap bank stocks suffered sharp declines on Monday, triggered by Bank of America's indication that trading revenue would be "relatively flat" compared to the third quarter of last year. Additionally, escalating worries over artificial intelligence-themed trading added further pressure to the financial sector. Bank of America's shares at one point extended losses to as much as 5.7%.

Chief Executive Officer Brian Moynihan stated at the Barclays Global Financial Services Conference that the bank's third-quarter trading revenue would be "relatively flat" year over year. Among the major banks leading the decline in the KBW Bank Index were Goldman Sachs, which fell 4.6%, Citigroup dropping 3.5%, Morgan Stanley sliding 4.1%, Wells Fargo down 3.0%, Bank of New York Mellon losing 3.5%, and JPMorgan Chase declining 2.2%.

Northern Trust's shares also dropped as much as 4.9% during the session. Chief Financial Officer Dave Fox projected that the company's quarterly results would experience a "seasonal downtick." In addition, a number of companies are scheduled to participate in the Barclays conference, including Synchrony Financial, Bank of New York Mellon, Citizens Financial Group, Blue Owl Capital, MSCI, Bank of Nova Scotia, S&P Global, Nasdaq, PNC Financial Services, Equifax, KeyCorp, Apollo Global Management, and Citigroup.