New York, January 28, 2026, 20:42 EST — The market has closed.
- Bank of America shares slipped roughly 0.7% to $51.81 Wednesday, as major U.S. banks ended the day unevenly.
- A Reuters report noted BofA plans to match the government’s $1,000 seed money for proposed “Trump Accounts” aimed at eligible employees’ children.
- Traders are turning their attention to Thursday’s U.S. data release and CEO Brian Moynihan’s scheduled appearance on Feb. 10.
Shares of Bank of America Corp dropped roughly 0.7% to $51.81 on Wednesday. JPMorgan Chase ticked up slightly, while Wells Fargo and Citigroup both edged lower. The stock fluctuated between $51.32 and $52.17, with volume hitting around 35 million shares.
The Federal Reserve’s decision to keep the benchmark rate at 3.50%-3.75% on Wednesday shifts focus to the future path of interest rates. “The economy has once again surprised us with its strength,” Fed Chair Jerome Powell said, while the central bank noted inflation remains “somewhat elevated.” Two officials broke ranks, voting for a rate cut. (Reuters)
Policy news has returned to the spotlight. According to a Reuters report, Bank of America plans to match the U.S. government’s $1,000 contribution to the proposed “Trump Accounts” for eligible employees’ children. This initiative would funnel federal seed money into accounts invested in low-cost index funds, which track market benchmarks and grow tax-deferred—meaning taxes are paid upon withdrawal. The memo added employees could make pre-tax payroll contributions, capped at $5,000 annually, while the employer’s share is expected to max out at $2,500.
Separately, an internal memo revealed that Bank of America has named Vito Lo Piccolo as its new country executive for Italy, taking over from Nino Mattarella, who is stepping down. Lo Piccolo will operate out of Milan and report directly to Bernie Mensah, president of international. (Reuters)
Bank of America announced that CEO Brian Moynihan is scheduled to speak at the BofA Securities Financial Services Conference on Feb. 10 at 8:00 a.m. Eastern. Investors often tune in to these sessions for insights on loan demand, cost pressures, and the leadership’s take on interest rates. (Bank of America)
Still, the bigger threat for consumer lenders comes from Washington. At an airline industry conference, advisers warned that capping credit-card interest rates at 10% would erase a “huge chunk of profit” for issuing banks and upend the economics of co-branded cards. “If you say that we’re going to cap it at 10%, that’s a huge chunk of profit that has just disappeared,” said Pooja Gardemal, managing director at BK Associates. Barclays managing director Michael Miller added, “Only people with means will be eligible for cards at a 10% rate.” (Reuters)
Bank stocks react sharply to policy chatter because it hits a crucial pressure point: the margin between loan earnings and deposit costs, tied to interest rates and the yield curve’s shape. Traders often view abrupt shifts in rate forecasts as a direct signal for bank profits, even if the broader economy remains stable.
The next data hits quickly. Thursday delivers the weekly jobless claims along with the U.S. productivity and costs report. Then Friday rolls in the Producer Price Index. These numbers often move Treasury yields and shake up rate-cut expectations. (Investing)
If the data comes in hot, traders might delay the next cut once more, giving bank shares a boost on the margin narrative. On the flip side, weaker numbers could tilt the market back toward cuts — though that risks reigniting concerns over slower growth and mounting credit losses.
Bank of America is zeroing in on Thursday’s data release and watching closely for any policy news that might start to influence the consumer-banking narrative. The next key event for the company is CEO Moynihan’s conference appearance on Feb. 10, where investors will probe for changes in tone around expenses, loan growth, and consumer credit.
