New York, Jan 26, 2026, 21:06 EST — Market closed.
- Bank of America shares ended the day 0.58% higher at $52.02, slipping 0.04% in late after-hours trading.
- Traders are bracing for the Fed’s policy update amid a packed week of mega-cap earnings reports
- Investors are focused on rates and guidance for hints about the next move in banks and the wider market
Shares of Bank of America Corp (BAC) closed Monday up 0.58%, finishing at $52.02 after swinging between $51.67 and $52.28. In late after-hours action, the stock dipped slightly by 0.04% to $52.00, with roughly 27.5 million shares changing hands. (StockAnalysis)
For Bank of America and other major lenders, the real trigger lies less in their own news and more in interest rates. Net interest income — the difference between what banks earn on loans and pay on deposits — can swing quickly as Federal Reserve outlooks change.
This week matters as markets await new clues on the direction of policy. Even if rates hold steady, a subtle shift in messaging can jolt Treasury yields, with bank stocks often moving in tandem.
Wall Street ended Monday on a positive note as investors braced for a wave of mega-cap tech earnings and the upcoming Fed meeting. The Dow climbed 0.64%, the S&P 500 gained 0.50%, and the Nasdaq rose 0.43%. Chris Zaccarelli, chief investment officer at Northlight Asset Management, noted, “You’re seeing communications and technology are trading well today in advance of the earnings from a lot of the large companies.” (Reuters)
Other major U.S. banks closed higher as investors returned to the sector following last week’s volatile trading. JPMorgan and Wells Fargo each gained roughly 1%, while Citigroup edged up just over 1%.
Bank of America had a routine filing on Monday: a prospectus for BofA Finance LLC’s market-linked notes program. It outlined accelerated return notes tied to the Bloomberg Commodity Index, maturing in March 2027, with Bank of America serving as guarantor.
The bank’s latest earnings report, released earlier this month, revealed a profit increase from the previous year, driven by a record in interest income and strong trading performance amid volatile markets, Reuters reported. CFO Alastair Borthwick also highlighted forecasts for mid-single-digit loan growth in 2026. (Reuters)
The rate story cuts both ways. If policymakers turn out more hawkish than investors expect, yields can spike, dragging bank stocks down. On the flip side, a weaker economy may reveal itself later through rising credit costs and slumping loan demand.
The next major event is the Fed’s policy statement on Wednesday at 2:00 p.m. ET, with Chair Jerome Powell’s press conference kicking off at 2:30 p.m. ET. These moments have the power to quickly shift the market’s expectations on rates and set the tone for big banks for the remainder of the week. (Federalreserve)
