NEW YORK, December 29, 2025, 11:58 ET — Regular session
- Bank of America shares fell about 1.3% as big U.S. bank stocks eased in holiday-thinned trading.
- The 10-year Treasury yield slipped to 4.12%, a move traders watch closely for its impact on bank lending margins. 1
- Investors are looking ahead to Fed minutes, weekly jobless claims and Bank of America’s Jan. 14 quarterly results. 2
Bank of America Corp (BAC) shares fell about 1.3% on Monday to $55.43 in late morning trading, as investors trimmed exposure to big U.S. lenders in year-end trade.
The move matters because bank profits are closely tied to interest-rate expectations. A flatter yield curve — when long-term rates fall relative to short-term rates — can squeeze the spread banks earn on lending.
With U.S. markets closed on Thursday for New Year’s Day and few major corporate catalysts on the calendar, traders have leaned on rate moves and macro signals to set positions. 2
Bank of America traded between $55.40 and $56.32 on the session, after opening at $56.03, market data showed.
Peers also slipped. JPMorgan Chase fell about 1%, Citigroup lost about 1.6% and Wells Fargo eased about 0.8%.
Exchange-traded funds tracking the group were lower, with the SPDR S&P Bank ETF down about 0.9% and the Financial Select Sector SPDR ETF off about 0.5%.
The 10-year U.S. Treasury yield, which influences interest rates on many consumer and business loans, slipped to 4.12% from just under 4.14% at Friday’s close, Investopedia reported. 1
“Bond market’s current stability relied on a ‘tenuous balance’,” Meghan Swiber, a senior U.S. rates strategist at BofA, told Reuters, pointing to subdued inflation expectations and the Treasury’s heavier reliance on shorter-maturity issuance. 3
Separately, CEO Brian Moynihan said on CBS’s “Face the Nation” that tariffs were settling around roughly 15% for many countries, according to Business Insider, comments that investors weigh for what they imply about business confidence and borrowing. 4
On the data front, pending U.S. home sales rose 3.3% in November, beating economists’ expectations, the National Association of Realtors said, a sign of improving housing demand as mortgage rates ease. 5
Broader U.S. stocks were lower, led by a pullback in heavyweight technology names, after recent gains pushed the S&P 500 to record highs, Reuters reported. Some investors had been looking for a “Santa Claus rally,” a seasonal tendency for stocks to rise at the end of December and early January. 2
Next on the calendar, investors are watching minutes from the Federal Reserve’s last meeting and weekly jobless claims in an otherwise light week for U.S. data, Reuters said. 2
For Bank of America, the next major catalyst is its fourth-quarter earnings report on January 14, the bank’s investor relations site shows. Traders will be watching management’s read on net interest income — the difference between what a bank earns on loans and pays on deposits — along with trading revenue and credit quality heading into 2026. 6
