New York, Jan 21, 2026, 20:16 EST — Market closed.
- Bank of America shares edged down 0.06% Wednesday, following a 1.64% fall the previous day.
- The bank announced plans to grant roughly $1 billion in stock to non-executive staff, totaling close to 19 million shares.
- Investors eye Thursday’s PCE inflation figures alongside the Fed’s Jan. 27-28 meeting for hints on interest rates and bank earnings.
Bank of America Corp shares closed Wednesday down 0.06% at $52.07, following a 1.64% drop Tuesday. Over two days, the stock barely budged in a week marked by shifting policy-driven swings in financial stocks. (Source: FinancialContent price data)
The subdued finish arrived as two issues weighed on BAC heading into Thursday: new equity grants for employees and a fresh battle in Washington over credit card fees.
This matters since Bank of America has stakes in both. Stock-based compensation impacts share count, and lending rules combined with rate forecasts can squeeze one of the sector’s top profit sources.
On Tuesday, the lender announced it plans to grant $1 billion to non-executive staff under its Sharing Success Program, which translates to almost 19 million common stock shares. CEO Brian Moynihan commented, “These awards demonstrate our belief that when our teammates share in our company’s success, it strengthens our business.” (Source: Bank of America press release)
Bank of America is handing out employee grants for the ninth consecutive year, Reuters reports. The bank’s profit for 2025 climbed to $30.5 billion, up from $27 billion the previous year, while its stock finished last year roughly 25% higher. (Source: Reuters)
Investors are also watching a White House initiative to cap credit card interest rates at 10% for one year. JPMorgan CEO Jamie Dimon slammed the plan as an “economic disaster,” warning it would “remove credit from 80% of Americans.” Meanwhile, Trump said he’s urging Congress to approve the cap. (Source: Reuters)
Wall Street banks are pushing the administration for clearer guidance while pitching alternative solutions, sources close to the discussions say. Citigroup CEO Jane Fraser, speaking to CNBC from Davos, acknowledged, “The President is right in focusing on affordability,” but cautioned that “capping rates would not be good for the U.S. economy.” (Source: Reuters)
Stocks turned higher on Wednesday. The S&P 500 added 1.16%, with the Dow climbing 1.21%, after Trump hinted at a framework deal involving Greenland and said he would scrap tariffs set to begin Feb. 1, according to Reuters. A regional banking index surged 4.7%, marking its best close since November 2024. (Source: Reuters)
Rates remain a key factor. A Reuters poll released Wednesday showed all 100 economists surveyed expect the Fed to hold its policy rate steady at 3.50%-3.75% at the January 27-28 meeting, with most predicting no change through the first quarter. “The economic outlook on the surface suggests the Fed should remain on hold,” said Jeremy Schwartz, senior U.S. economist at Nomura. (Source: Reuters)
The downside risk hasn’t disappeared. Should the credit-card cap pick up steam in Congress, or if data shifts rate expectations, BAC might face another steep sell-off. Take Tuesday, for example: it plunged over 1.5% despite investors already factoring in policy risks.
Thursday brings the Personal Consumption Expenditures price index, the Fed’s go-to inflation measure. Economists forecast core PCE inflation—excluding food and energy—to hover around 2.8% year-on-year through November, according to Investopedia. Any deviation could shake up rate expectations and ripple through bank stocks.
Looking ahead, traders will zero in on the Fed’s meeting set for Jan. 27-28, followed by Bank of America’s quarterly earnings report on April 15. These events stand out as the next major catalysts for BAC, after a week crowded with political and policy chatter. (Source: Federal Reserve FOMC calendar | Bank of America 2026 reporting dates)
