New York, January 7, 2026, 17:45 EST — After-hours
- Bank of America shares were down about 3% in after-hours trading as investors weighed a report on an India regulatory finding.
- Wolfe Research cut the stock to “peer perform” ahead of bank earnings season.
- The lender is set to report results on January 14, with expenses and rate-sensitive income in focus.
Bank of America Corp shares were down 2.8% in after-hours trading on Wednesday as investors weighed a report that India’s markets regulator found the bank improperly shared confidential information ahead of a 2024 block trade. The stock last traded at $55.64 after moving between $55.45 and $57.21 in the session. The Wall Street Journal, citing people familiar with the matter, said the Securities and Exchange Board of India issued a “show cause notice” — a request to explain why enforcement action should not follow — tied to an alleged leak of material non-public information, meaning price-sensitive details not yet public, about a $180 million sale of shares in Aditya Birla Sun Life AMC; Bank of America declined to comment and Reuters could not immediately verify the report. Reuters
The timing is awkward. Bank of America said it will report fourth-quarter results on Jan. 14, releasing numbers at about 6:45 a.m. ET and hosting a conference call at 8:30 a.m. ET — the sort of event where investors push for clarity on net interest income (what a bank earns on loans minus what it pays on deposits) and spending plans. Bank of America
The stock was already under pressure earlier in the day after Wolfe Research downgraded Bank of America and JPMorgan to “peer perform,” citing limited upside after last year’s rally. “We are taking some chips off the table,” analyst Steven Chubak wrote in a note. U.S. stocks finished mixed on Wednesday, with the S&P 500 down 0.34% and JPMorgan off 2.3%, underscoring the hit to financials. Bloomberg
In a separate filing on Tuesday, Bank of America said it elected to change accounting methods tied to tax-related equity investments in affordable housing and renewable energy. The bank said the shift is largely a reclassification across income-statement line items, though it also disclosed a $1.7 billion decrease to retained earnings as of Sept. 30, 2025 and estimated a 13-basis-point hit to its common equity tier 1 (CET1) ratio — a key regulatory capital measure — if the new method had been applied then. SEC
Looking into earnings, analysts expect the largest U.S. banks to post stronger fourth-quarter profits next week on a rebound in investment banking activity and steadier trading. “The biggest variable we’re monitoring heading into earnings and the new year is what happens with inflation,” Morningstar analyst Sean Dunlop told Reuters. For Bank of America, LSEG estimates point to earnings per share rising by nearly 17%, and CEO Brian Moynihan has said he expects markets revenue to climb by a high single-digit percentage to 10% in the quarter. Reuters
Macro is on deck too. The Labor Department is scheduled to release the Employment Situation report for December on Friday, Jan. 9 at 8:30 a.m. ET, followed by the December Consumer Price Index report on Tuesday, Jan. 13 at 8:30 a.m. ET. Rate expectations matter for banks because moves in yields and the shape of the curve can quickly change investor views on loan pricing and net interest income. Bls
But the India matter is hard to handicap from here. If SEBI presses its case, or if the process drags, the overhang could collide with a market already jumpy about controls and costs at big banks.
Technically, the stock is sitting on its session low area. Traders will watch whether it holds above $55.45; Wednesday’s high near $57.21 is the first obvious hurdle on a bounce.
The next test comes Jan. 14, when Bank of America releases results and fields questions on 2026 expenses, rate-sensitive income and markets momentum. Any update — or lack of one — on the India inquiry could also shape how investors treat the stock going into the next session.
