NEW YORK, Feb 24, 2026, 18:49 EST — After-hours
- Bank of America shares slipped again, marking their second consecutive decline even as the wider U.S. market bounced back.
- Bank shares stayed under pressure, caught between shifting tariff policies and uncertainty over the Fed’s rate path.
- Next up for investors: more headlines out of Washington, along with a batch of new corporate updates.
Bank of America Corp (BAC) slipped 1.3% to $50.41 at the close on Tuesday, bucking an S&P 500 that climbed 0.8%. The move lower set BAC apart as risk appetite reemerged for most stocks. (MarketWatch)
Why it matters now: Banks have been under pressure since Monday, when financials tumbled 3.3%—investors scrambling to make sense of policy swings and tech costs. “You’ve seen the market react to headlines, it’s ‘sell first, assess later,’” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. (Reuters)
Tuesday saw sentiment lift, as some investors brushed off what they saw as exaggerated AI disruption fears and took note of what Reuters called tariff relief. Still, the trade backdrop remained tangled: temporary U.S. tariffs held at 10%, chatter about a possible jump to 15% reemerged, and the market waited for clarity with President Donald Trump set to speak to Congress. (Reuters)
The KBW Bank Index barely budged Tuesday, following Monday’s 4.4% slide—underscoring how banks remain a macro trade rather than a stock-picker’s playground. The benchmark, which tracks big U.S. bank names, was little changed. (Investing.com)
Rates also remain in focus. On Tuesday, two Federal Reserve officials signaled they aren’t in a rush to adjust policy. Boston Fed President Susan Collins called it “quite likely” that rates need to stay where they are “for some time.” (Reuters)
For Bank of America, it’s straightforward: the direction of rates filters straight into loan appetite and net interest income—the difference between what the bank makes from loans and what it pays out on deposits. The path of rates also colors investor views on credit quality, especially during sluggish growth or persistent inflation.
BAC shares dropped 3.75% on Monday, mirroring a selloff across major financials as the broader market slumped. The stock had already been moving in step with the tape. (MarketWatch)
Not much in the way of company headlines, though one event stands out: Bank of America co-president Dean Athanasia is set to appear at the RBC Capital Markets Global Financial Institutions Conference on March 10. (Bank of America)
For now, banks face their biggest threats from politics and broader economic shifts, not from their own leadership. Trump’s State of the Union looms large—investors are on edge, waiting to see if fresh swings hit the market. Sam Stovall at CFRA points out the address could “add to the levels of anxiety” for traders. Wall Street, meanwhile, is scanning for specifics on policy moves that might affect credit card rates and consumer loans. (Reuters)
Coming up, traders are eyeing Trump’s comments slated for later Tuesday, and Nvidia’s earnings set for Wednesday—they’re hoping for signals on risk appetite. Fresh information about tariffs or changes to consumer credit rules might sharply shift bank stocks in the following session. (investors.com)
