New York, Feb 12, 2026, 11:39 ET — Regular session
- Bank of America shares fall about 2.8% in late-morning trading, tracking a drop in big U.S. banks
- Investors position for Friday’s U.S. inflation report, a key input for Fed rate expectations
- CEO Moynihan this week reiterated targets for returns and net interest income growth
Bank of America shares fell about 2.8% on Thursday, under pressure with other large U.S. lenders as investors positioned for a pivotal inflation report that could reset expectations for Federal Reserve policy. The stock was at $52.32, after trading between $51.94 and $54.20.
The move matters because bank shares tend to track shifts in interest-rate expectations. Lower policy-rate bets can squeeze net interest income — the spread between what a bank earns on loans and pays on deposits — while higher-for-longer rates can cool loan demand and lift credit stress. (Investopedia)
Traders’ next hard marker is the U.S. Consumer Price Index report for January, due Friday at 8:30 a.m. ET. A surprise in either direction can hit Treasury yields and, by extension, the rate-sensitive parts of the stock market. (Bureau of Labor Statistics)
The selling was broad across the top banks. JPMorgan Chase was down about 2.6%, Wells Fargo fell about 2.5%, Citigroup slid about 3.7% and Goldman Sachs dropped about 2.6% in the same window.
On Wednesday, financial services was one of the weak spots in an otherwise muted U.S. session, as traders trimmed rate-cut bets and the S&P bank index closed down 2.6%. A global market strategist at New York Life Investments called the backdrop “constructive” but said it comes down to a “sweet spot” on growth that doesn’t derail future easing. (Reuters)
That repricing started with Wednesday’s jobs report, which showed payroll growth accelerated in January and the unemployment rate fell to 4.3%. The data gave the Fed room to sit tight, even as it watches inflation. (Reuters)
Bank of America has also been trying to keep investors focused on its own levers. CEO Brian Moynihan told a financial services conference on Feb. 10 that the bank expects net interest income to rise 5%-7% this year and aims for a 16%-18% return on tangible common equity — a profitability measure that strips out goodwill and other intangibles — within 12 quarters. “The consumers in January spent 5% more money at Bank of America,” he said, adding the bank “probably” invests about $2 billion a year in technology development. (Investing)
But those targets sit on assumptions that can shift fast. A hotter CPI print could push yields higher and keep borrowing costs elevated, while a sharp downside miss can revive rate-cut chatter that weighs on banks’ margin outlook. Regulation is another swing factor: tougher capital rules can crimp buybacks and dilute returns even if revenues hold up.
For Bank of America, the next company catalyst on the calendar is its quarterly earnings release on April 15. In the meantime, traders will be watching Friday’s CPI for the first big reset of the week — and whether bank stocks catch a bid or keep sliding into the weekend. (Bankofamerica)
