What Happened?\nA number of stocks fell in the morning session after a surprisingly weak July jobs report and the announcement of sweeping new tariffs fueled fears of an economic slowdown and an impending interest rate cut. \nThe U.S. economy added just 73,000 jobs in July, the weakest gain in over two years, while the unemployment rate rose to 4.2%. This dismal data significantly increased market expectations for a Federal Reserve interest rate cut, with traders now pricing in an 80% probability of a cut in September. Lower interest rates typically harm bank profitability by compressing their net interest margins—the difference between what they earn on loans and pay on deposits. Compounding these worries, the announcement of new tariffs on imports from 92 countries has sparked fears of a global trade war, which could further dampen economic growth and disrupt supply chains, creating a challenging environment for the banking industry. \n The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. \n Among others, the following stocks were impacted:\nRegional Banks company OFG Bancorp <a>OFG</a> fell 3.5%. Is now the time to buy OFG Bancorp? <a>Access our full analysis report here, it’s free.</a>Regional Banks company NBT Bancorp <a>NBTB</a> fell 3.2%. Is now the time to buy NBT Bancorp? <a>Access our full analysis report here, it’s free.</a>Regional Banks company M&amp;T Bank <a>MTB</a> fell 3.3%. Is now the time to buy M&amp;T Bank? <a>Access our full analysis report here, it’s free.</a>Regional Banks company Live Oak Bancshares <a>LOB</a> fell 3.3%. Is now the time to buy Live Oak Bancshares? Access our full analysis report here, it’s free.Regional Banks company Lake City Bank <a>LKFN</a> fell 3.2%. Is now the time to buy Lake City Bank? Access our full analysis report here, it’s free.\nZooming In On OFG Bancorp (OFG)\nOFG Bancorp’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. \nOFG Bancorp is up 0.5% since the beginning of the year, but at $41.81 per share, it is still trading 10.5% below its 52-week high of $46.72 from November 2024. Investors who bought $1,000 worth of OFG Bancorp’s shares 5 years ago would now be looking at an investment worth $3,212.

OFG Bancorp, NBT Bancorp, M&T Bank, Live Oak Bancshares, and Lake City Bank Shares Are Falling, What You Need To Know

Regional banks including OFG Bancorp, NBT Bancorp, M&T Bank, Live Oak Bancshares, and Lake City Bank experienced stock price declines following a weak July jobs report and new tariffs, which fueled fears of an economic slowdown and potential interest rate cuts. The weak data raised market expectations for a Federal Reserve rate cut, impacting bank profitability.