New York, Feb 1, 2026, 15:47 ET — Market closed.
- Citigroup shares ended Friday 0.4% higher, closing at $115.71 as U.S. markets wrapped up the week.
- Bank stocks have shifted focus to the rate outlook following Donald Trump’s selection of Kevin Warsh to head the Federal Reserve.
- The stock will go ex-dividend on Feb. 2, while traders keep an eye on U.S. payrolls data set for later this week.
Citigroup shares ended Friday 0.4% higher at $115.71. Investors now turn to a week expected to focus on interest-rate news and an upcoming dividend adjustment.
Why it matters now: Banks price in rate moves since shifts in borrowing costs affect lending appetite and the gap between earnings on assets and deposit expenses. The Warsh nomination has added a new layer of uncertainty to this mix, coming as investors prepare for important U.S. economic data.
Monday marks a technical trigger for Citi that could shift the stock, regardless of other factors. The shares go ex-dividend, so anyone buying from that day onward won’t receive the next dividend payment.
Warsh’s nomination “clears uncertainty” about Trump’s pick for the Fed’s top job, though questions remain about how his previous hawkish stance fits with Trump’s drive for lower rates. “It’s kind of difficult to assess how the market is going to accept this nomination,” said Peter Cardillo, chief market economist at Spartan Capital Securities. Brian Jacobsen of Annex Wealth Management described Warsh as “not a puppet of the President,” but warned there could still be clashes with the White House down the line. Interest-rate futures are still pricing in two cuts this year, with the next expected around June, Reuters reported. (Reuters)
Wall Street’s key indexes dropped Friday following the announcement, as investors also digested earnings reports and hotter-than-expected producer price inflation. “Markets are calibrating” to the new Fed chair pick and what it means for policy, said Michael Hans, chief investment officer at Citizens Wealth. Angelo Kourkafas, senior global strategist at Edward Jones, flagged a mix of concerns, including the Fed chair choice and the risk of a government shutdown. (Reuters)
Over the weekend, Trump claimed Warsh might win Democratic backing in the Senate and predicted his nominee would push for rate cuts. But Republican Senator Thom Tillis told Reuters he plans to stall the confirmation until the Justice Department wraps up its probe into Jerome Powell, likely making the process contentious. (Reuters)
Citi’s board announced a quarterly common dividend of $0.60 per share, set to be paid on Feb. 27 to shareholders recorded by Feb. 2. On the ex-dividend date, shares usually drop by about the dividend amount, since new buyers won’t qualify for the payout. (Citi)
Peers wrapped up Friday with mixed results. JPMorgan Chase closed at $305.89, Bank of America at $53.20, and Wells Fargo at $90.49, all staying locked into the ongoing rate-driven macro debate.
One risk: if Warsh’s confirmation process drags out or if debate over Fed independence stirs volatility in yields and the dollar, bank shares could jump on headlines instead of fundamentals. Policy uncertainty is also clouding consumer credit. In January, Jane Fraser said she didn’t expect Congress to approve the White House’s proposed cap on credit-card interest rates. (Reuters)
Traders are set to focus on Tuesday’s JOLTS job openings report and the January U.S. employment report coming Friday, both capable of shifting rate expectations sharply if numbers differ from forecasts. The U.S. Bureau of Labor Statistics plans to release January payroll data on Feb. 6 at 8:30 a.m. ET. (Bureau of Labor Statistics)
