Credit card stocks slide after Trump floats 10% interest rate cap
Jan 12, 2026
Stocks of credit card companies were tumbling Monday morning after President Donald Trump threatened moves that could eat into their profits. The rest of Wall Street, meanwhile, was showing only modest signals of concern after tensions ramped to a much higher degree between the White House and the
Federal Reserve.
The SP 500 edged down by 0.1% from its all-time high as U.S. stocks drifted through mixed morning trading, while prices for gold and other investments that tend to do well when investors are nervous rose. The value of the U.S. dollar also dipped against the euro and other currencies amid concerns that the Fed may have less independence in setting interest rates to keep inflation under control.
The Dow Jones Industrial Average was down 179 points, or 0.4%, as of 9 a.m. Central time, and the Nasdaq composite was nearly unchanged.
Some of the market’s sharpest drops came from credit card companies, as Synchrony Financial, Capital One Financial and American Express all fell between 4% and 7%. They sank after Trump said he wanted to put a 10% cap on credit card interest rates for a year. Such a move could eat into profits for credit card companies.
Read more from The Associated Press.
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