Banking sector: JPMorgan vs Bank of America earnings

What happened: Bank of America (BAC) reported strong Q1 2026 earnings, beating estimates with EPS of $1.11 (vs. $1.01) and revenue of $30.43 billion (vs. $29.93 billion). This was driven by robust equities sales and trading, with record quarterly revenue, and a 7.2% increase in revenue year-over-year. JPMorgan (JPM), in comparison, posted record payments revenue and beat EPS estimates by $0.41.

Market impact: The banking sector saw a broad boost, with investors favoring JPMorgan over Bank of America. The strong earnings from both banks, despite geopolitical chaos, indicate a resilient U.S. economy, driving optimism in the sector. Bank of America's stock jumped on the news, while JPMorgan's shares also saw gains.

What to watch next: Upcoming earnings from other major banks, including Goldman Sachs (GS), Citigroup (C), Wells Fargo (WFC), BlackRock (BLK), and Morgan Stanley (MS), will provide further insight into the health of the banking sector. Additionally, the technical assessment indicates a bullish intermediate-term outlook for Bank of America, with a potential breakout above recent highs.