NEW YORK, Jan 10, 2026, 05:51 EST — The market has closed.
- Mastercard (NYSE:MA) closed Friday 0.8% lower, at $575.54.
- Starting Jan. 20, Trump proposed a one-year cap on credit card interest rates set at 10%.
- Upcoming on investors’ radar: U.S. CPI data due Jan. 13 and the Fed meeting set for Jan. 27-28. Mastercard is slated to report earnings on Jan. 29. (Bls)
Mastercard Incorporated shares enter Monday trading with credit policy in focus, following President Donald Trump’s call to cap credit card interest rates at 10% for one year starting Jan. 20. The stock closed down Friday, despite the broader market hitting new highs.
The proposal focuses on card issuers rather than payment networks such as Mastercard, though traders frequently treat the sector as a whole. If the cap tightens credit availability, it could dampen card spending and curb loan growth — eventually weighing on transaction volumes.
Timing is everything. Payments stocks now serve as a quick gauge of both the U.S. consumer and interest rate trends. The coming weeks are packed with inflation reports, Fed announcements, and earnings releases.
U.S. stocks hit record highs on Friday following a weaker-than-anticipated December jobs report showing a 50,000 payroll increase and a 4.4% unemployment rate, Reuters said. The S&P 500 climbed 0.65%, even as Mastercard slipped, Visa edged down 0.7%, and American Express fell 1.9%.
Friday was the record date for Mastercard’s upcoming quarterly dividend of $0.87 a share, with payment scheduled for Feb. 9, per the company’s dividend calendar. Stocks often dip around this cut-off since new investors miss out on the payout. (Mastercard Investor Relations)
Sell-side price targets remain firmly above Mastercard’s last close. MarketWatch-tracked analysts put the average target at $664.32, with forecasts spanning from $525 up to $745. The stock has traded between $465.59 and $601.77 over the past year, currently sitting about 4% shy of its high. (MarketWatch)
There’s movement on the company-specific front as well. JPMorgan and Apple announced this week that JPMorgan will take over the Apple Card portfolio from Goldman Sachs, with Mastercard continuing as the payment network; the deal isn’t expected to close for about two years. Goldman CEO David Solomon described it as a deal that “substantially completes” the bank’s shift away from consumer banking.
The consumer outlook isn’t straightforward. The University of Michigan’s early-January sentiment index nudged up to 54.0 from 52.9, yet director Joanne Hsu noted households “remain guarded” on business conditions and the labor market. A New York Fed survey found Americans grew more concerned about job prospects in December, even as its president John Williams said inflation expectations “remain well-anchored.”
This story could still fall apart in several ways. Trump’s call for a rate cap came without any concrete plan and would probably require Congress to act. Industry groups have warned such a cap might “reduce credit availability,” hitting payments volumes. On top of that, Mastercard and Visa are under continued scrutiny over their card fees; last month, major retailers pushed a judge to reject a proposed swipe-fee settlement. (Reuters)
