New York, Feb 23, 2026, 17:35 EST — After-hours.
- BAC dropped alongside other financials during a risk-off session.
- Rate-cut timing stayed in focus, with sticky inflation and tariff policy moves stirring debate.
- Traders eye consumer confidence numbers due Tuesday, along with updates on tariffs.
Bank of America slid 3.7% on Monday, closing at $51.07, down $1.98. Shares swung from $50.91 to $53.25 during the session, with roughly 50.5 million shares traded. After the bell, the stock hovered near $51 in after-hours action.
Bank of America wasn’t alone in the drop. Financials led losses in the S&P 500, with the index sliding over 1% as traders wrestled with fresh tariff worries and jitters about just how quickly artificial intelligence (AI) could disrupt the economy. “Sell first, assess later,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. 1
Rate bets whipped around too. The New York Fed’s preferred inflation measure, which aims to cut through volatility, edged higher to 2.8% in December—up from 2.4% the month before. That’s yet another sign that price pressures are sticking around. Dallas Fed President Lorie Logan called herself “cautiously optimistic” that inflation can slip back toward the Fed’s 2% target, though the central bank left its policy rate steady at 3.5%-3.75%. 2
Trade policy got more tangled. U.S. Customs and Border Protection said it would stop collecting tariffs under an emergency law starting at 12:01 a.m. EST on Tuesday. Those duties will give way to a new 15% global tariff, imposed under a separate authority. The agency told the trade community to expect “additional guidance” soon. Refunds? Still uncertain. 3
Major banks took hits across the board. Shares of Wells Fargo slid roughly 4%, with Morgan Stanley off almost 5% during the session. Large-cap financials offered few safe spots for investors. 4
Selling could spiral if traders start to believe tariffs will lock in stubborn inflation and force the Fed to hold rates higher for longer. For banks, it’s a mixed bag: higher rates may boost interest income, yet loan demand and credit quality might take a hit if the economy slows down.
Setting aside broader macro swings, Bank of America’s next big event lands April 15, when the bank posts quarterly results. That update gives investors their usual snapshot of BofA’s take on loan appetite, deposit pricing, and where credit is heading. 5
Tuesday brings the next immediate hurdle. The Conference Board drops its consumer confidence numbers at 10 a.m. ET, with traders eyeing that release closely. They’ll also keep an ear out for any news on tariffs or fresh policy signals overnight that might nudge risk appetite into the following session. 6
