New York, January 19, 2026, 11:19 EST — Market closed
Bank of America Corp shares ended Friday at $52.60. In late trading, they edged up roughly 0.7% to $52.97. U.S. stock markets stayed closed Monday for Martin Luther King Jr. Day and will resume trading Tuesday. (AP News)
The pause follows Bank of America’s earnings report last week, which beat profit expectations thanks to a trading surge and record interest income. The bank projects net interest income—the difference between loan earnings and deposit costs—will climb 7% this quarter. It also maintained its 5% to 7% growth forecast for 2026. CEO Brian Moynihan described the outlook as “bullish on the U.S. economy in 2026.” (Reuters)
The stage is set for more macro turmoil as markets open Tuesday. Global stocks dipped Monday after President Donald Trump warned of new tariffs targeting imports from eight European countries. The levies would start at 10% on Feb. 1, escalating to 25% by June 1 if no Greenland agreement is reached. Futures for the S&P 500 and Nasdaq dropped over 1.2%, while gold and silver climbed to fresh highs. “It’s highly likely that the White House will use the threat of tariffs consistently,” said George Lagarias, chief economist at Forvis Mazars. (Reuters)
Some investors are looking past the immediate headlines. Stephen Innes from SPI Asset Management described the dispute as a test of the alignment that has driven capital into U.S. markets. He emphasized, “This is not a short-term liquidation story. It is a slow rebalancing story.” Meanwhile, traders will get another inflation update this week with the personal consumption expenditures price index, or PCE, a key measure the Federal Reserve watches closely. (AP News)
At Bank of America, the daily focus frequently centers on rates and the yield curve’s shape. When long-term yields drop, it can squeeze the spread banks make, despite the fact that cheaper borrowing costs might boost loan demand down the line.
Tariff discussions have a double-edged effect on major banks. They tend to boost hedging and trading activity, yet they can also stall corporate decision-making and drag down deal flow as executives turn wary.
The setup isn’t straightforward. If the risk-off trend intensifies, bank stocks could take an early hit. Credit concerns tend to surface later, often appearing first as rising consumer charge-offs or subtle corporate downgrades that gradually ripple through.
Coming up fast, Thursday brings U.S. core PCE inflation data, personal income and spending figures, plus the final read on third-quarter GDP. Then on Friday, flash PMI business surveys hit the wires. (S&P Global)
Looking ahead, all eyes turn to the Federal Reserve’s two-day policy meeting on Jan. 27-28, with a press conference set for Jan. 28. The Fed also reminded markets that data normally released on MLK Day will come out Tuesday, when trading resumes. (Federal Reserve)
