NEW YORK, Jan 10, 2026, 06:36 EST — Market closed
American Express (AXP) shares slid $7.36, or 1.9%, to $375.61 on Friday, as investors weighed President Donald Trump’s call for a one-year 10% cap on credit-card interest rates. The stock traded between $373.87 and $384.97, with about 2.8 million shares changing hands. 1
The rate-cap talk matters because issuers like American Express earn interest on balances that customers carry month to month, charged as an annual percentage rate, or APR, on top of fees tied to spending. It also hits as investors try to square consumer demand with stubborn inflation: a University of Michigan survey showed sentiment ticked up in early January, but households still worry about prices and the job market. “They remain guarded about the overall strength of business conditions and labor markets,” survey director Joanne Hsu said. 2
Trump said the 10% cap would start Jan. 20 but did not explain how it would be enforced, and earlier versions of the idea have run into questions about whether Congress would need to act. A group of banking trade bodies warned the cap could “reduce credit availability” and “drive consumers toward less regulated, more costly alternatives.” American Express and other card issuers and lenders, including Capital One, JPMorgan Chase, Citigroup and Bank of America, did not immediately respond to requests for comment, Reuters reported. 3
American Express lagged a broader rally on Friday: the S&P 500 rose 0.65%, while shares of Visa fell 0.70% and Bank of America dipped 0.59%, according to MarketWatch data. The stock is about 3% below its 52-week high of $387.49 hit on Dec. 12. TD Cowen analyst Moshe Orenbuch raised his price target to $375 from $350 on Thursday while keeping his rating, according to a note published by StreetInsider. 4
U.S. credit card borrowing remains large. Consumer loans in credit cards and other revolving plans at commercial banks stood at about $1.062 trillion in the week ended Dec. 31, Federal Reserve Bank of St. Louis data showed. 5
The next data test comes Tuesday: the Labor Department is due to publish the December consumer price index at 8:30 a.m. ET. Traders are also staring down the Federal Reserve’s Jan. 27-28 meeting for any change in its message on rates. 6
Bank earnings will add another read on credit and consumer health before AmEx reports. JPMorgan Chase is set to publish fourth-quarter and full-year 2025 results on Jan. 13, with a conference call at 8:30 a.m. ET, the bank said. 7
But Washington headlines can fade fast, and investors may treat the rate-cap call as political noise unless lawmakers move a bill. Rate bets are still moving, too: after Friday’s jobs report, traders trimmed expectations for near-term Fed cuts, and Atlanta Fed President Raphael Bostic said, “Inflation is still too high.” A slower cut cycle can keep APRs elevated, helping interest income in the short run while raising the risk of late payments and loan losses if budgets tighten. 8
For American Express stock, traders are watching for any concrete follow-through on the 10% cap before markets reopen. The company is scheduled to hold its fourth-quarter and full-year 2025 earnings call on Jan. 30 at 8:30 a.m. ET, and it has also flagged management participation in UBS’s Financial Services Conference on Feb. 10 at 1:00 p.m. ET. 9
