New York, January 29, 2026, 1:06 PM (EST) — Regular session
Bank of America shares rose about 1.9% on Thursday, bucking a softer tape as investors leaned back into big banks and away from rate-sensitive growth stocks. The stock was last at $52.78.
The move matters because Bank of America’s earnings are tied to where interest rates settle. Higher rates can lift what the bank earns on loans versus what it pays depositors — a spread investors often call net interest income.
That rate path is in flux again after the Federal Reserve paused its easing cycle on Wednesday, with futures pointing to June as the next cut. “Inflation is a bit sticky, and the Fed was right to stand pat,” Tim Holland, chief investment officer at Orion, said. (Reuters)
The Fed held its benchmark rate in a 3.50%-3.75% range and Chair Jerome Powell pointed to a “solid economy,” suggesting policymakers can wait for more data before moving again. “The economy has once again surprised us with its strength,” Powell told reporters. (Reuters)
Other major lenders traded higher alongside Bank of America. Wells Fargo gained about 1.7% and JPMorgan Chase rose roughly 1.4%, while Citigroup was little changed.
Company news also stayed in focus. Bank of America and Wells Fargo told employees they will match the U.S. government’s one-time $1,000 seed contribution for proposed “Trump Accounts” for eligible employees’ families, according to internal memos seen by Reuters. (Reuters)
In Europe, an internal memo showed Bank of America appointed Vito Lo Piccolo as country executive for Italy, replacing Nino Mattarella, who is retiring. Lo Piccolo will be based in Milan and report to international president Bernie Mensah, the memo said. (Reuters)
But the setup cuts both ways. If inflation does not cool, rate cuts could get pushed out — or disappear — and that can change the outlook for credit costs and loan demand. “I think there may be no cuts in 2026,” said Chris Grisanti, chief market strategist at MAI Capital Management. (Reuters)
Next up is a run of U.S. data that can move bond yields and, by extension, bank stocks. The Producer Price Index is due Friday, and the monthly jobs report follows on Feb. 6, the Bureau of Labor Statistics’ calendar showed. (Bureau of Labor Statistics)
A bigger date is now later. The government shutdown threw the calendar off: the advance estimate of fourth-quarter GDP and the December personal income and outlays report — which includes the Fed’s preferred PCE inflation gauge — are scheduled for Feb. 20. (Bea)
