New York, Jan 13, 2026, 21:14 EST — Market closed.
- American Express shares dipped 0.4% Tuesday, following a steep decline the day before linked to rising U.S. policy uncertainty on card rates.
- Traders are sizing up how fast Congress might act on a rate cap and what impact that would have on card-lending profits.
- This week’s spotlight turns to bank earnings, with American Express set to report on Jan. 30.
American Express (AXP.N) slipped 0.44% to close at $358.00 on Tuesday, continuing its decline following President Donald Trump’s proposal to cap credit-card interest rates for one year.
This shift is critical as it lands right in the thick of earnings season for banks and consumer lenders. Executives usually lay out their views on loan growth, credit losses, and regulatory risks at this time. Even a slight signal of stricter rules can quickly alter the calculations for card portfolios.
This comes as markets grapple with whether the Washington noise will stick. “Financials are getting hit by Trump’s credit-card proposal,” noted Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. Reuters
U.S. stocks closed down Tuesday, dragged mostly by financials, despite a December inflation report that matched expectations and fueled hopes for rate cuts, Reuters reported.
Trump proposes a 10% cap on credit-card APRs beginning Jan. 20, but hasn’t specified how it would be enforced. Analysts warn such a binding limit would probably require Congressional approval.
UBS Global analysts told Reuters that putting rate caps in place would require an Act of Congress, due to expected legal hurdles if done by executive order.
That downside risk is enough to unsettle investors: banks might pull back by slashing credit lines, shutting accounts, or making approvals tougher. This could squeeze both spending and fee income simultaneously. J.P. Morgan analyst Vivek Juneja cautioned the move “would not address the root of the problem,” according to Reuters. Reuters
American Express lagged on Monday following the initial cap headline hitting card lenders, closing down 4.27% at $359.59.
Following the decline, a few analysts updated their forecasts. RBC Capital boosted its price target for American Express to $425 from $390, maintaining an Outperform rating, according to a note reported by TheFly.
Peers moved in sync with the policy shift. Visa and Mastercard dropped steeply Tuesday, dragging the S&P 500 financial sector below the broader market’s pace, Reuters noted.
American Express is set to release its fourth-quarter results soon. The earnings call is slated for Friday, Jan. 30, at 8:30 a.m. ET.
