New York, Jan 17, 2026, 11:07 AM EST — Market closed.
- Shares of Bank of America rose 0.7% to close Friday at $52.97.
- After the quarterly results, investors remain uncertain about the bank’s net interest income forecast.
- Coming soon: a holiday-shortened week, followed by the Fed’s policy meeting later in January.
Bank of America shares ended Friday up 0.7%, closing at $52.97 after swinging between $52.25 and $53.38 during the session. Trading volume hit roughly 52 million shares. (Bank of America Corporation)
The change may seem minor, but it comes amid a turbulent stretch for bank stocks. Earnings season is underway, and shifting rate expectations are shaking up forecasts for net interest income — the gap between what banks earn on loans versus what they pay on deposits.
NYSE trading pauses Monday for Martin Luther King Jr. Day. The next U.S. session resumes Tuesday. (New York Stock Exchange)
Bank of America posted a fourth-quarter net income of $7.6 billion, or $0.98 per share, on $28.4 billion in revenue. Net interest income climbed roughly 10% to $15.8 billion, and sales and trading revenue reached $4.5 billion. The bank returned $8.4 billion to shareholders during the quarter. CEO Brian Moynihan stated, “We are bullish on the U.S. economy in 2026.” (Bank of America Corporation)
Late Friday, the bank announced its board has approved regular cash dividends on several preferred stock series, set to be paid out in February and March. (Bank of America)
The bigger question for the common stock remains the trajectory of interest rates. The bank projects net interest income will climb 7% in Q1 and reaffirmed its 5% to 7% growth forecast for fiscal 2026. “Markets are taking a little time to digest,” said Jake Johnston, deputy chief investment officer at Advisors Asset Management. CFO Alastair Borthwick added, “We’ve seen growth in all of the consumer borrowing categories.” (Reuters)
Friday’s trading followed the sector trend instead of reacting to any specific news. Bank of America gained 0.72%, Citigroup edged up 0.49%, and Wells Fargo fell 0.65%. The S&P 500 and Dow closed slightly down, according to MarketWatch data. (MarketWatch)
Rates remained under the spotlight as the session wrapped up. The 10-year Treasury yield hit 4.24% on Friday, per U.S. Treasury data. (U.S. Department of the Treasury)
Fed chatter is heating up again. On Friday, Federal Reserve Vice Chair for Supervision Michelle Bowman warned the central bank must be prepared to cut rates if the labor market falters, and urged caution against hinting at a pause in rate reductions. (Reuters)
The situation remains fragile. If rate cuts arrive sooner than banks anticipate, lending spreads might tighten even as funding costs drop, squeezing net interest income. Credit risk adds another layer of uncertainty: provisions could spike sharply if consumer delinquencies increase.
Tuesday’s reopen will be key for investors seeking momentum, as interest rates and upcoming financial-sector earnings dominate the agenda. The next major event to watch is the Federal Reserve’s policy meeting on Jan. 27-28. (Federalreserve)
