NEW YORK, Feb 10, 2026, 17:37 EST — After-hours
- Bank of America shares fell about 1.8% on Tuesday, in step with other big U.S. banks.
- CEO Brian Moynihan told investors he expects interest rates to keep coming down, even as the bank cited steady consumer activity.
- Traders are braced for Wednesday’s U.S. payrolls report as the next test for rate-cut bets.
Bank of America Corp (BAC) shares were last down 1.8% at $55.39 in after-hours trading on Tuesday, after moving between $54.28 and $56.83 during the session. Volume was about 48 million shares.
The move landed as bank stocks cooled with Treasury yields after December retail sales came in flat, a miss against forecasts for a 0.4% rise. The 10-year Treasury yield dipped below 4.15% at the close, down from 4.21% on Monday — a roughly 6 basis-point move, or 0.06 percentage point.
Traders also leaned further into rate-cut odds. The chance of a quarter-point cut in April rose to 36.9% from 32.2% on Monday, CME’s FedWatch tool showed, with attention shifting to Wednesday’s delayed U.S. payrolls report. “Bad news is good news,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, said of the softer data. Reuters
At Bank of America’s financial services conference, CEO Brian Moynihan said “interest rates are gonna continue to come down” and called that “very constructive.” He also said the bank’s customers in January spent 5% more than a year earlier, and reiterated that the bank sees net interest income — the gap between what a lender earns on loans and pays out on deposits — growing 5%-7% this year, alongside 2%-3% deposit growth and a 16%-18% return on tangible common equity, a key profitability gauge. Investing
Other large banks slid as well. JPMorgan Chase fell 1.2%, Citigroup lost 1.4% and Wells Fargo dropped 2.8%.
The Fed message was less one-way. Dallas Fed President Lorie Logan said she was “cautiously optimistic” the current rate setting will do the job on inflation, and suggested more cuts might not be needed if the data cooperate. Reuters
For Bank of America, the rate path is a live wire. Falling yields can squeeze net interest income over time, even if cheaper money later supports loan demand and deal activity.
But the trade can flip fast. A stronger-than-expected payrolls report could lift yields and take some pressure off bank margins, while a weaker print may pull yields lower again and refocus investors on credit risk and slower growth.
Investors will also watch whether the recent pullback in rate-sensitive financial names stays concentrated in pockets like wealth management, or drifts across the broader banking group.
Next up is Wednesday’s U.S. jobs report. For Bank of America itself, the next scheduled earnings release is April 15.
