New York, February 5, 2026, 14:18 EST — Regular session
Shares of Bank of America dipped roughly 1%, slipping to $54.83 during Thursday afternoon trading as U.S. stocks broadly declined.
This shift is crucial as major banks often react sharply to changes in interest-rate forecasts and economic signals — both stirred up again by recent U.S. labor data. Weekly jobless claims climbed to 231,000, while job openings dropped to 6.542 million. The January employment report got pushed back to next Wednesday due to a short federal government shutdown, Reuters reported. (Reuters)
Wall Street tilted toward defensiveness early on. A tech-driven selloff, sparked by concerns over the cost of the AI boom, dragged major indexes down. Treasury yields slid following the latest labor data, Reuters reported. “Investors today are starting to turn more defensive,” said Ameriprise chief market strategist Anthony Saglimbene. (Reuters)
Bank of America wasn’t the only one feeling the heat. JPMorgan Chase dropped roughly 2.3%, Wells Fargo slid 1.2%, Citigroup declined 1.5%, and Goldman Sachs dipped 1.9%. The Financial Select Sector SPDR Fund also fell about 1.2%.
Bank of America kept a low profile on the news front this week but did confirm its next quarterly cash dividend on common stock at $0.28 per share. That payment is set for March 27, with the record date on March 6. The board also approved a $1.75 dividend on its 7% Series B preferred stock, payable April 24 to shareholders of record April 10, the company said. (Bank of America)
Washington remains a key factor for the bank group. Big U.S. banks ramped up lobbying last year as policy battles escalated under President Donald Trump’s administration, a Reuters analysis revealed. Banks and major trade groups shelled out $86.8 million, tackling everything from capital rules to crypto legislation. “Because we are in such an active environment, you want to make sure you are fully at the table,” said Ed Mills, a policy analyst at Raymond James. (Reuters)
Dollar and bond markets have been volatile. Bank of America analysts flagged a potential “disorderly” dollar decline this week, warning it could squeeze U.S. financial conditions and pressure long-dated Treasuries, Reuters reported. Investors are wrestling with policy uncertainty and doubts about Fed independence. “The main question is whether people lose confidence in the U.S. asset base,” said Barclays strategist Themos Fiotakis. (Reuters)
A recent regulatory filing revealed Bank of America is pitching fixed-rate callable notes maturing in 2041, offering 5.15% interest each year. Since the debt is callable, the issuer can redeem it early, capping the period investors receive coupon payments.
For BAC, the immediate tug-of-war remains unchanged: slower growth and sliding yields pressure bank profits, while shifts in politics and regulation can rapidly alter the outlook. The risk? Data could deteriorate further, prompting investors to factor in weaker loan growth and rising credit costs right as policy uncertainty flares up once more.
The postponed U.S. Employment Situation report lands Wednesday, Feb. 11. It’s a crucial checkpoint for rate forecasts and could steer the mood around bank stocks heading into next week. (Stlouisfed)
