NEW YORK, Jan 24, 2026, 11:03 (EST) — Market closed
Shares of Bank of America Corp slipped 1.4% on Friday, ending the day at $51.72. The stock, caught in the wider U.S. banking selloff, moved between $51.38 and $52.52. Roughly 34.6 million shares changed hands during the session.
Investors are now focused on the Federal Reserve’s January 27-28 meeting and a packed earnings calendar that could reveal if heavy AI investments are paying off. Roughly 20% of the S&P 500 will report, including big names like Apple, Microsoft, Meta Platforms, and Tesla. The Fed is widely expected to keep rates unchanged when it meets Wednesday. “It’s been a little bit of a short but steep roller-coaster ride,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. (Reuters)
Bank of America is dealing with fresh political pressure around credit cards, a source told Reuters. The bank is reportedly exploring new cards with a 10% interest rate, aiming to navigate President Donald Trump’s proposed nationwide interest-rate cap. Citigroup is said to be weighing a similar approach. Analysts caution that any cap would likely require legislation and could take various forms if it goes forward at all. (Reuters)
Banks are struggling with the impact of lower rates, which tighten net interest income—the difference between earnings on loans and costs on deposits. On Friday, regional lender First Citizens projected 2026 net interest income below Wall Street’s estimates, dragging the KBW Nasdaq Regional Banking Index down roughly 3%. “It has clearly been a difficult adjustment to lower rates,” said Truist analyst Brian Foran. (Reuters)
On Friday, the Dow dropped 0.58%, while the S&P 500 held mostly steady and the Nasdaq gained 0.28%, buoyed by megacap tech stocks. Intel, however, saw a steep decline after lowering its forecast. Despite Friday’s mixed moves, all three major indexes closed the week in the red, rattled by tariff talk linked to Trump’s bid to acquire Greenland. “We’re feeling pretty good, but mindful we might have some significant twists and turns,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth. (Reuters)
Shares of other big banks also slipped Friday, with JPMorgan Chase retreating 1.95% and Wells Fargo down 1.23%. This pullback dragged the sector behind the S&P 500, which ended the day flat. (MarketWatch)
Thursday’s inflation figures stirred up activity among rate traders. The personal consumption expenditures (PCE) price index, the Fed’s favored inflation metric, climbed 0.2% in November and stood 2.8% higher than a year ago. The “core” PCE, which excludes food and energy, also rose 2.8% year-over-year. Meanwhile, personal consumption expenditures increased 0.5% in November, according to the same report.
Bank of America beat profit estimates earlier this month, with record interest income softening a volatile quarter. The bank told investors it expects net interest income to climb 7% this quarter and reaffirmed its 5% to 7% growth target for fiscal 2026. CFO Alastair Borthwick forecasted mid-single-digit loan growth for 2026. Moynihan described the bank as “bullish on the U.S. economy in 2026.” (Reuters)
The situation isn’t straightforward. If the Fed turns out more dovish than anticipated, bank margins could come under renewed strain, sparking fears that loan yields might drop faster than deposit costs adjust. On top of that, any unexpected rise in consumer delinquencies would weigh heavily, particularly with Washington still hashing out credit-card regulations.
The Fed will announce its decision at 2 p.m. ET on Jan. 28, with Chair Jerome Powell scheduled to hold a press conference at 2:30 p.m., per the central bank’s calendar. (Federal Reserve)
Investors will first see Monday’s update from the Atlanta Fed’s GDPNow model, which most recently estimated fourth-quarter 2025 growth at 5.4%. For bank stocks, higher growth tends to boost loan demand, though it also adds uncertainty to interest rate forecasts. (Federal Reserve Bank of Atlanta)
Bank of America’s shares open Monday with few clear catalysts: the direction of interest rates, updates on credit-card limits, and how mega-cap earnings influence risk appetite. Most traders appear set to hold off until the Fed’s Jan. 28 statement before making major moves.
