The Commonwealth Bank of Australia (ASX: CBA) share price is down a hefty 1.05% to $102.37 at the time of writing.
All the big four ASX 200 bank shares are plunging today, with Australia’s biggest bank experiencing a similar slide in mid-afternoon trade to National Australia Bank Ltd (ASX: NAB) shares, which are now down 1.09% to $27.81.
ANZ Group Holdings Ltd (ASX: ANZ) shares have fallen 0.83% to $25.14.
The Westpac Banking Corp (ASX: WBC) share price is down 0.77% to $21.81.
This compares to an 0.79% dip for the benchmark S&P/ASX 200 Index (ASX: XJO) to 7,296.7 points.
What’s dragging the CBA share price down?
It’s the whole “US market sneezes and Australia catches a cold” thing going on in the market today.
Overnight, the Dow Jones Index (INDEXDJX: .DJI) dropped by 348 points or 0.98%, and the S&P 500 (INDEXSP: .INX) fell 63 points or 1.38% in the worst session for each index since May, according to CNBC.
This follows stronger-than-expected jobs data and Fitchâs credit rating downgrade for the US economy due to high and growing debt and an anticipated economic downturn over the next three years.
What’s next for CBA shares?
As discussed on Fool this week, the outlook for the CBA share price in August is pretty bleak.
Twelve out of 15 analysts on Commsec say CBA shares are currently a sell. This appears to be due to valuation.
Stuart Bromley of Medallion Financial Group told The Bull this week:
The shares have risen from $95.80 on June 9 to trade at $106.43 on July 27.
The price provides an opportunity to consider trimming shares based on our view of possibly lower net interest margins and slowing credit growth. In our opinion, upside is limited in the near term. We will reconsider our position on CBA should we see a price retreat.
The CBA share price has moved within a 52-week range of $89.66 and $111.43.
Citi has a sell rating on the bank and predicts CBA shares will tumble to two-year lows in FY24.
The broker has a 12-month price target of $82.50 on CBA.
What’s the latest news from this ASX 200 banking giant?
The bank is due to release its full-year results on 9 August.
CBA revealed this week it has run up $212 million in costs across two items in 2H FY23.
