Bank of America falls after HSBC downgrades to 'hold'

Wall Street giant Bank of America's BAC.N shares fall 2% to $47.70 premarket after HSBC downgrades stock rating to "hold" from "buy"

Brokerage says although BAC has underperformed rival U.S. big banks YTD, the stock has seen considerable price-to-earnings multiple expansion given consensus estimates downgrades

Says greater-than-expected Fed cuts could negatively impact BAC, which has more exposure to U.S. short-end rates

HSBC is also adopting a more cautious stance on U.S. big banks after a big stock rally

BAC set to report Q2 earnings on July 16

19 of 25 brokerages rate the stock "buy" or higher and 6 "hold"; median PT $51.50

As of last close, BAC stock was up 10.7% YTD