New York, Feb 10, 2026, 12:41 (ET) — Regular session
- Bank of America shares are off roughly 1% around midday, while the KBE bank ETF is down about 0.7%.
- U.S. retail sales missed forecasts, sending yields down and shifting attention back to rate expectations.
- This week, investors zero in on the jobs report and CPI—key signals for where rates might head next.
Bank of America Corp shares slipped nearly 1% by midday Tuesday, echoing weakness across U.S. financial stocks. Shares recently traded at $55.82.
This comes as investors puzzle over the outlook for interest rates—a major factor for bank profits. December’s retail sales flatlined, surprising forecasters, and the “control group” that feeds into GDP dipped by 0.1%. The 10-year Treasury yield drifted down to around 4.15%. When yields fall, banks can see net interest income shrink, since the spread between loan returns and deposit costs narrows. 1
Charlie Ripley, portfolio manager at “Allianz Investment Management,” pointed to the softer retail numbers, saying they “indicat[ed] that maybe the economy wasn’t as strong” as traders expected heading into the fourth quarter. That sort of signal can knock down bank stocks—even if the overall tape isn’t moving much. 2
Plenty of chatter on rates. Cleveland Fed President Beth Hammack told reporters she thinks interest rates might remain unchanged “for quite some time,” calling the current range “appropriate” with inflation risks still hovering. 3
Bank of America chief Brian Moynihan weighed in, telling Reuters he expects interest rates “are going to continue to come down,” and described the outlook as “constructive.” 4
Moynihan described deposit growth as “good.” 5
He made the remarks during the BofA Securities Financial Services Conference, where the bank streamed the event live for investors. 6
BofA Finance—a funding arm—was seen in a securities filing pitching market-linked “Digital Return Notes” that track whichever underperforms between the Dow Jones Industrial Average and the S&P 500. Bank of America stands behind the notes as guarantor.
Interest rates have been in the spotlight for the stock ever since its earnings release. Back on Jan. 14, the bank projected net interest income would climb 7% for the quarter, sticking to its forecast of 5% to 7% NII growth for fiscal 2026. 7
This isn’t a one-way bet. Should inflation flare up again or yields start rising, bank stocks could quickly reverse course. And if the economy slows more than forecast, higher credit costs might wipe out the gains banks get from cheaper funding.
A packed schedule looms, with the U.S. jobs report arriving Feb. 11, then the CPI two days later on Feb. 13. Bank of America lines up its next quarterly earnings for April 15. 8
