New York, Jan 12, 2026, 20:58 ET — Market closed.
- Wells Fargo shares dropped roughly 1% on Monday, mirroring a wider retreat across the financial sector.
- Bank stocks shifted following President Donald Trump’s proposal of a one-year 10% cap on credit-card interest rates.
- Wells Fargo is set to release its quarterly results on Wednesday, as investors focus on the bank’s guidance and signs from consumer credit.
Wells Fargo & Co shares dropped roughly 1% on Monday, last trading at $94.96. Investors digested remarks from U.S. President Donald Trump on limiting credit-card interest rates. The stock’s dip coincided with traders bracing for a busy slate of U.S. bank earnings this week. 1
Timing is key as Wall Street’s top lenders kick off earnings before Tuesday’s open, with credit cards once again grabbing attention as a profit engine. Traders want early clues on consumer strength and whether execs spot fresh policy risks creeping into 2026 forecasts. 2
Wells Fargo will release its fourth-quarter 2025 earnings on Wednesday, Jan. 14, around 7:00 a.m. Eastern, with results available online. 3
Investors are zeroing in on capital return strategies — dividends and buybacks — along with return metrics like ROTCE, or return on tangible common equity. This measure cuts out goodwill and other intangibles to get at profitability. Such details can be just as crucial as headline profit figures when it comes to bank valuations. 4
Analysts caution that if a rate cap becomes law, lenders may clamp down on credit, hitting riskier borrowers hardest. Jefferies warned consumers might be “restricted by card companies,” dragging down spending and GDP. Truist suggested subprime cards could turn “unprofitable,” while Barclays pointed to “material headwinds” for card profits. J.P. Morgan added that a cap might push borrowers toward “pawn shops and other non-bank consumer lenders.” 5
The rate outlook is changing fast. J.P. Morgan has pushed back its forecast for Federal Reserve easing. Goldman Sachs and Barclays have also delayed their expected rate cuts, highlighting how quickly assumptions on rates — and bank net interest income — can shift. On the other hand, Wells Fargo and BofA Global Research are sticking to their earlier timelines for cuts. 6
For Wells Fargo, the pressing issue isn’t if a cap becomes law but how it shifts sentiment. Analysts will dig into card pricing, underwriting, and watch closely for any shifts in loan demand amid the swirling headlines.
Still, the plan might never get through Congress. Lenders warn a hard cap could tighten credit for riskier borrowers. On top of that, a sluggish economy could push charge-offs and provisions higher, no matter Washington’s moves.
Monday’s selloff hit more than just the major banks. Consumer lenders and card-linked stocks dropped even harder at times, while money-center banks also slid, creating a jittery lead-up to earnings reports. 7
First out of the gate: JPMorgan’s earnings ahead of Tuesday’s open, followed by Wells Fargo early Wednesday. Traders will zero in on executives’ takes on card economics, credit quality, and capital strategies — plus any hints that policy talk might shift their guidance.
