New York, Feb 5, 2026, 20:55 ET — The market has closed.
Shares of Bank of America Corp (NYSE: BAC) slipped 0.8% to $54.94 on Thursday, trading within a range of $54.25 to $55.59 during the session.
Wall Street slipped as tech stocks led the downturn, rattled by concerns over hefty AI investments and their impact on earnings. The S&P 500 slid 1.23%, the Nasdaq dropped 1.59%, and the Dow declined 1.20%. (Reuters)
For banks, the rate narrative is still tied to the labor market. Weekly jobless claims climbed to 231,000, while job openings dipped to 6.542 million in December. This mix could shift expectations about the Fed’s next moves on rates. “More than anything, we see the data as reflective of ongoing judicious hiring practices,” said Oren Klachkin, a financial markets economist at Nationwide. (Reuters)
Bank of America’s net interest income — the difference between what it earns on loans and pays on deposits — closely tracks interest rate moves and hiring trends. Even slight changes in those forecasts can quickly impact big bank stocks.
After the bell, Bank of America announced it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series DD, along with the related depositary shares. The depositary shares, which represent a tradable portion of the preferred stock, are set for redemption on March 10 at $1,000 each, the bank said. (Bank of America)
Preferred stock ranks higher than common equity in a bank’s capital hierarchy. A redemption works like a call: the issuer repurchases the shares at the set price and halts dividend payments once the call date arrives.
Investors are keeping an eye on Washington, where banks are pushing to influence upcoming rules and fees. According to a Reuters analysis, big U.S. banks increased their lobbying spend by 12% in 2025, reaching $86.8 million. This surge comes as regulators and lawmakers consider changes to capital rules and new 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)
But policy shifts work both ways. Plans that tighten card economics, combined with a sharper economic slowdown, could hit earnings drivers that hold more weight for bank investors than just one capital move.
Heading into Friday, traders are gauging if the week’s risk-off mood will keep targeting high-growth stocks or spread back into financials. Lately, bank shares have shifted without any company-specific news.
The next major event isn’t a quarterly report but a key government release: the Bureau of Labor Statistics announced the postponed January jobs report will drop Wednesday, Feb. 11. The January CPI figures have also been pushed back to Friday, Feb. 13. (Reuters)
