New York, January 18, 2026, 10:57 EST — Market closed.
- Bank of America shares ended the session 0.7% higher, closing at $52.97.
- U.S. stocks resumed trading Tuesday following the Martin Luther King Jr. Day holiday, as focus turns to a proposed 10% cap on credit-card rates.
- Investors are focused on White House signals and how banks react on cards, pricing, and rewards.
Bank of America Corp shares ticked up slightly on Friday, closing at $52.97, a 0.7% gain. The real pressure on bank stocks could hit when U.S. markets open Tuesday, with Washington’s moves likely to overshadow earnings reports.
The New York Stock Exchange will be closed Monday in observance of Martin Luther King Jr. Day, delaying the next trading session until January 20. That’s also the date President Donald Trump has targeted to implement a proposed cap on credit-card interest rates, limiting them to 10% for one year. Credit-card rates are typically expressed as an APR, or annual percentage rate. 1
Banks and investors remain in the dark about how the cap would be put into practice or enforced, and whether Congressional approval is necessary. “I think there will be an ongoing conversation between the industry and the administration,” said Stephen Biggar, a banking analyst at Argus Research. 2
Credit cards remain a lucrative segment for lenders, but traders are weighing how banks might ease political pressure without sacrificing too much profit. “The likely features of that card would be less robust,” said Moshe Orenbuch, managing director at TD Cowen, pointing to lower-rate products that come with fewer perks. Brian Mulberry, senior client portfolio manager at Zacks Investment Management, added, “Policy volatility is likely to create market volatility until there is a clear path forward for banks and regulators.” 2
The bank sector has been highlighting steady consumer activity and strong capital markets, despite the looming rate-cap proposal weighing on card issuers. “Equity trading revenues have been the standout in the earnings so far,” Mulberry noted in a separate report on the major banks’ fourth-quarter results. 3
Bank of America’s latest update remains its Q4 report from earlier this month. CEO Brian Moynihan expressed optimism, calling the bank “bullish on the U.S. economy in 2026.” The bank posted fourth-quarter net income of $7.6 billion, with net interest income — the margin earned on loans and investments after funding costs — hitting $15.8 billion. 4
Late Friday, the bank announced its board approved regular cash dividends on multiple preferred stock series, set for payment in February and March. 5
Still, a hard cap—or even a chaotic, voluntary rush to meet it—could squeeze card economics, alter rewards, and nudge lenders toward stricter credit standards. If that unfolds, BAC faces an obvious downside: weaker fee and interest income from cards, plus a heated political battle over who secures credit and under what conditions.
The immediate trigger is Tuesday, Jan. 20: watch for any White House signals, shifts in bank card APRs, and the initial market reaction on how investors factor policy risk into Bank of America and its rivals.
