Bank of America Corp. shares moved higher Wednesday afternoon, tracking gains across Wall Street as financial stocks got a lift. Bond yields pulled back from yesterday's peaks, giving banks some support.
The stock traded up nearly 1% at $51.19, off an earlier high at $51.57. JPMorgan Chase climbed 2.1%. Citigroup gained 3.9%. Wells Fargo added 1.4%. The Financial Select Sector SPDR Fund, which tracks U.S. financial stocks, moved almost 1% higher.
Banks are back to trading on the same two drivers: if higher rates will help lending margins or weigh on markets, and if capital-markets activity is enough to keep fees flowing. Regular trading took place on the New York Stock Exchange Wednesday. The exchange says on its 2026 calendar that markets' next holiday is Memorial Day, May 25.
Stocks climbed on Wednesday, with the Dow, S&P 500, and Nasdaq all moving up as chip names rallied ahead of Nvidia's numbers. The 10-year Treasury yield slipped back to 4.588% after hitting a 16-month high the day before, helping some rate-sensitive names find a bid. "Nvidia's earnings come at just the right time," said James Demmert, chief investment officer at Main Street Research.
Bank of America is also in the mix for a busier deal slate. Reuters said late Tuesday that Bank of America, Citigroup and JPMorgan are set to be among the lead banks working on SpaceX's expected IPO, with Goldman Sachs to be the senior "lead left" underwriter. No details yet on underwriting fees.
U.S. convertible bond sales are picking up. About $34 billion in new paper hit the market in the first four months of 2026, more than double last year's amount, Bank of America Global Research and Barclays Research data shows. Convertible bonds let holders swap debt for stock under certain terms. "A lot of it is to build out capital expenditure," said Michael Youngworth, who leads global convertibles at Bank of America Securities, citing AI-linked financing.
Bank of America stuck to a well-known earnings pattern. The bank posted Q1 revenue at $30.3 billion with net income coming in at $8.6 billion and diluted earnings per share at $1.11. Its sales and trading revenue was up 13% to $6.4 billion, helped by record equities trading.
Net interest income is still the other main lever for banks. That's the gap between what banks get from loans and securities, and what they pay for deposits and funding. Bank of America was looking for net interest income to grow 5% to 7% in 2026. The bank later posted better-than-expected first-quarter numbers. Co-President Dean Athanasia told a conference in March that volatility, investment banking and wealth management were "good revenues."
Bank of America's next event is set for next week. Chair and CEO Brian Moynihan will appear at the Bernstein Strategic Decisions Conference on May 27. The bank will webcast his remarks live on its investor relations website. Earnings are due out July 14.
Stocks dropped Tuesday with inflation fears sending Treasury yields higher, oil staying up, and investors questioning if the Fed could return to rate hikes. Higher yields might help banks if lending picks up, but a sharp rise can hurt stocks, slow deals and put stress on borrowers. Bank of America's rally is looking more like a play on the wider market mood than any one company story. Shares could get a boost from a better IPO pipeline, good trading, or steady credit. But if yields bounce, capital-market fees drop off or deposit costs climb, that could hurt.
