New York, January 8, 2026, 20:49 EST — Market closed
- Bank of America shares rose about 1% on Thursday as investors weighed an India regulator notice tied to a 2024 deal.
- A Wolfe Research downgrade added to the pre-earnings chatter across big U.S. banks.
- Next catalysts: Friday’s U.S. payrolls report and Bank of America’s Jan. 14 results.
Shares of Bank of America (BAC) climbed nearly 1% on Thursday, following a Reuters report that India’s markets regulator charged a Bank of America unit with violating insider trading rules in a 2024 stock sale.
The timing feels off. Major U.S. banks begin their earnings reports next week, with Bank of America among the first to take the stage. Investors are already focused on expenses and income that shifts with rates, so new compliance news could quickly grab attention.
It also matters because the stock has tracked the sector’s rate story closely. Banks tend to trade based on the yield curve’s shape and what’s expected from Fed policy, which can shift fast as new macro data comes in.
India’s Securities and Exchange Board (SEBI) accused the bank’s Indian securities unit of breaking internal “Chinese walls” — those internal barriers designed to keep deal information away from other teams — during the March 2024 sale of Aditya Birla Sun Life Asset Management shares, according to a notice seen by Reuters. Bank of America didn’t reply to a request for comment, Reuters reported, while a source said the bank has submitted an application to settle the charges without admitting wrongdoing. “This case looks less like classic insider trading and more like an internal-controls failure, which can attract serious regulatory action,” said Sumit Agrawal, senior partner at Regstreet Law. Reuters
The stock last changed hands at $56.18, marking a 0.9% rise from the previous close. During the session, it swung between $55.40 and $56.575, based on market data. Wall Street ended Thursday on a mixed note, with traders eyeing Friday’s December nonfarm payrolls report. Reuters
On the analyst front, Wolfe Research cut its ratings on Bank of America and JPMorgan before earnings, citing scant room for gains after bank stocks’ recent rally. “We are taking some chips off the table,” analyst Steven Chubak said, according to Bloomberg. Bloomberg
Bank of America’s results are expected to land right in the middle of a strong quarter for major lenders, buoyed by a pickup in deal activity and steady trading. Earnings per share are projected to jump nearly 17%, driven by higher net interest income — that’s the gap between what the bank earns on loans versus what it pays on deposits — along with a boost in trading revenue, according to LSEG estimates cited by Reuters. “The fourth quarter shaped up to be a perfect recipe” for investment banking revenues, Stephen Biggar, a banking analyst at Argus Research, told Reuters. Reuters
But the stock could still veer off course. A settlement in India or further regulatory moves might hold it back from matching the sector’s pace. Plus, if Friday’s jobs report shakes up rate expectations, banks could take a swift hit—especially if investors begin to factor in narrower margins or weaker loan growth.
Traders are eyeing Friday’s U.S. payrolls report for clues, followed by Bank of America’s fourth-quarter results set for Wednesday, Jan. 14. The company said it plans to release numbers around 6:45 a.m. ET, with an investor call scheduled for 8:30 a.m. ET. Bankofamerica
