NEW YORK, Feb 1, 2026, 11:06 AM EST — Market closed.
- Bank of America shares ended at $53.20, edging up 0.3% from the previous session’s close
- Kevin Warsh’s appointment to head the Fed has investors reevaluating their expectations for the central bank’s future moves
- Up next: ISM Monday, jobs report Feb. 6, and CPI Feb. 11
Bank of America shares closed at $53.20, gaining 0.3% after the bell Friday. U.S. markets were closed Sunday and will reopen Monday.
What’s moving BAC right now isn’t a fresh Bank of America story. It’s all about interest rates—and the political noise swirling around them.
Banks hinge their fortunes on the yield curve’s twists and turns and when rate cuts come. Rising yields boost interest income, yet persistent inflation and policy uncertainty can dent loan demand and push up funding costs.
Interest-rate futures remain priced for two Fed cuts in 2026, with June seen as the most probable timing for the first move, despite the White House’s decision on the Fed chair role. (Reuters)
President Donald Trump on Friday nominated former Fed governor Kevin Warsh to replace Jerome Powell when Powell’s term as chair expires in May. The move has already sparked a confirmation battle, with a Justice Department investigation into Powell underway and Republican Senator Thom Tillis threatening to place a hold on the nomination. (Reuters)
On Saturday, Trump predicted Warsh might attract Democratic votes. He also reiterated his wish for Warsh to bring down interest rates but stressed he wasn’t asking for any specific promises. (Reuters)
Risk aversion set the tone heading into the weekend. U.S. stocks slipped on Friday while the 10-year Treasury yield ticked higher, reacting to a hotter-than-forecast producer price index and the announcement of the Fed chair nominee. “You’ve got uncertainty… perhaps new monetary direction,” said Terry Sandven, chief equity strategist at U.S. Bank Asset Management. (Reuters)
For Bank of America, this is significant since its stock often moves in line with interest rate trends, similar to peers like JPMorgan Chase, Wells Fargo, and Citigroup, especially when macroeconomic factors dominate the market narrative.
The most recent major company update came with earnings: Bank of America released its fourth-quarter results on Jan. 14, beating profit forecasts and highlighting increased net interest income—the gap between earnings on loans and costs on deposits. (Reuters)
The risk scenario is clear. Should inflation remain stubborn and markets delay rate cuts — or if the Fed confirmation drags on, testing its independence — bank stocks could find themselves squeezed between “higher-for-longer” rates and concerns over growth and credit.
The week kicks off quickly with ISM’s manufacturing PMI set to drop Monday at 10:00 a.m. EST, marking the first business day of the month. (Institute for Supply Management)
Next up, all eyes turn to the U.S. employment report for January, due at 8:30 a.m. on Friday, Feb. 6. This data will be the next major trigger for rate forecasts and, consequently, for Bank of America’s shares. (Bls)
