New York, Jan 29, 2026, 21:27 (EST) — Market closed.
Bank of America shares climbed 2.45%, closing Thursday at $53.08. The uptick came as the Federal Reserve decided to keep its benchmark rate steady between 3.5% and 3.75%, reassuring investors in major banks. (Barron’s)
Timing is key. Traders face renewed uncertainty on Friday about the direction of U.S. rates after President Donald Trump said he will name his choice to replace Fed Chair Jerome Powell Friday morning. That announcement could shift expectations for rate cuts and alter the yield curve’s trajectory. (Reuters)
Bank stocks move with rates. When investors delay rate cuts or long-term yields climb quicker than short-term rates, lenders can boost profits by earning more on loans than they shell out on deposits — a crucial driver for bank earnings.
Thursday’s U.S. markets showed a mixed bag: the Dow inched up, the S&P 500 dipped a bit, and the Nasdaq fell as earnings reports came in. Treasury yields softened toward the close. (AP News)
Peers followed suit. JPMorgan rose 1.88%, Wells Fargo jumped 2.96%, keeping Bank of America’s gain roughly on par with the group’s trajectory. (MarketWatch)
In legal news, a U.S. judge decided Bank of America must face part of a proposed class action accusing the bank of knowingly benefiting from Jeffrey Epstein’s sex trafficking by providing banking services. The bank expressed satisfaction that the claims were narrowed. The judge’s detailed ruling is due by Feb. 13, with a trial scheduled for May 11. (Reuters)
Rate strategists took a cautious stance following the Fed meeting. Chris Grisanti, chief market strategist at MAI Capital Management, described the message as “decidedly on the hawkish side.” Karl Schamotta, chief market strategist at Corpay, remarked that the Fed “did nothing and did it with conviction.” (Reuters)
The setup can turn fast. Should growth data weaken and traders pile into rate-cut bets, long yields could drop, squeezing banks’ lending margins. Yet if the economy falters, credit costs might climb even as that spread narrows.
Friday’s U.S. Productivity and Costs report drops at 8:30 a.m. EST. This one’s key—it directly influences wage-pressure and inflation expectations, which in turn can move Treasury yields. Those yields often dictate the direction for bank stocks. (Bls)
