NEW YORK, December 29, 2025, 6:06 PM ET — After-hours
Bank of America shares fell 1.5% in after-hours trading on Monday to $55.35, giving back ground as big banks retreated with the broader market. The stock traded between $55.28 and $56.32 during the session, with about 21.0 million shares changing hands.
The late dip lands at a sensitive moment for rate-linked financial stocks. Investors have been recalibrating how fast the Federal Reserve might cut rates next year, a shift that can change how much lenders earn on their core lending business.
That matters because banks’ earnings are heavily tied to the gap between what they earn on loans and securities and what they pay for deposits and other funding. That gap shows up most directly in net interest income — the spread-based profit line that can swing with moves in market rates.
Wall Street’s main indexes ended lower in the first session of the final week of the year, with technology shares weighing on sentiment. The Dow finished down 0.51% and the S&P 500 slipped 0.35%, while bank stocks pulled back; Citigroup fell 1.9%. Minutes from the Fed’s previous meeting and a weekly reading on jobless claims are due later this week.
Treasury yields eased as investors adjusted their rate-cut bets, a backdrop that often pressures bank shares when longer-dated yields fall. “In light volume trading, we’re seeing a reversal of what we saw over the last couple of days,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. Reuters
Funding markets also drew attention into quarter-end. A Federal Reserve overnight liquidity facility saw increased use on Monday, with eligible firms borrowing $25.95 billion via standing repo operations, New York Fed data showed; the loans are made overnight at 3.75%, the top of the Fed’s target range.
The Financial Select Sector SPDR Fund was down 0.5%, reflecting the broader pullback in financials. Among major peers, JPMorgan Chase was last down 1.3% and Wells Fargo slipped 0.8% after the bell.
For Bank of America, traders often treat moves in long-term Treasury yields as a near-term read-through to expectations for interest income. Falling yields can compress what banks earn on new loans and securities, especially if deposit costs prove sticky.
The next question is whether the week’s Fed minutes and labor-market data reinforce the market’s tilt toward easier policy, or push yields higher again. Either outcome can quickly change positioning in rate-sensitive banks during thin, year-end trading.
Before the next regular session, investors will also be watching whether funding markets stay calm through the turn of the quarter. Spikes in short-term borrowing demand tend to surface first in repo markets, where cash is lent against high-quality collateral such as Treasuries.
Bank of America’s next major scheduled catalyst is earnings. The bank has said it will report fourth-quarter 2025 results on Wednesday, Jan. 14, 2026.
When the report arrives, investors are likely to focus on the bank’s net interest income trend, credit performance and expense discipline — the set of drivers that can matter more than a single quarter’s headline profit.
In the meantime, Monday’s range leaves traders eyeing the mid-$55 area as near-term support, with the mid-$56 level as the first hurdle if yields rebound and the sector steadies.
