New York, Jan 20, 2026, 21:16 EST — Market closed.
- Shares of Capital One fell 4.4% Tuesday, lagging behind other major U.S. banks.
- New remarks in Davos sharpened focus on Washington’s efforts to limit credit card interest rates.
- Capital One will release its earnings on Thursday.
Capital One Financial shares tumbled 4.36%, closing at $228.72 on Tuesday, underperforming several major financial rivals as U.S. stocks broadly retreated. The stock saw volume around 7 million shares, well above its 50-day average of 4.1 million, finishing roughly 12% below its 52-week peak reached earlier this month. 1
With markets closed until Wednesday, traders are wrestling with a policy headline that still lacks clarity. President Donald Trump has proposed capping credit card interest rates at 10% for one year starting Jan. 20, but the White House hasn’t explained how this would be enforced. Industry sources told Reuters last week there’s no legal or regulatory obligation to comply yet. “I think there will be an ongoing conversation between the industry and the administration,” said Stephen Biggar, a banking analyst at Argus Research. 2
On Tuesday, U.S. Treasury Secretary Scott Bessent signaled the debate isn’t going away anytime soon. Speaking to CNBC at the World Economic Forum in Davos, he said, “I think it is not unreasonable to have a discussion on the practices of these credit card companies,” following renewed scrutiny after Trump’s proposal on card pricing. 3
Citigroup CEO Jane Fraser, speaking at Davos, said she doubts Congress will approve caps on credit card interest rates. “The president is right in focusing on affordability,” she noted, but added, “capping rates would not be good for the U.S. economy.” 4
Despite the political noise, some sell-side analysts remain steady on their calls. Morgan Stanley bumped Capital One’s price target to $300 from $280, maintaining its “Overweight” rating, a note reported by TheFly shows. For context, a price target reflects where an analyst thinks a stock might head, and “overweight” suggests the shares should outperform. 5
Capital One plans to report its fourth-quarter 2025 earnings on Thursday, Jan. 22, around 4:05 p.m. ET, the company confirmed. A conference call will follow at 5:00 p.m. ET. 6
That report now serves as the immediate focal point for the stock. Investors are tuning in for updates on credit trends within the card portfolio — including delinquency rates, charge-offs, and the proportion of balances customers are late on or fail to pay back. They’ll also watch for any signs from management about demand easing amid persistently high rates.
Equally crucial is how the bank might react if a cap became law. A mandated cut in interest on revolving balances—the sums customers carry month to month—would probably change the calculations behind rewards, credit limits, and approval decisions.
Both bulls and bears face a clear “but.” Should Washington’s talks stall in Congress, the policy overhang could vanish fast. On the other hand, if lawmakers or regulators carve out a path forward, banks might tighten credit to safeguard returns. That move could dampen spending volumes and fee income, even if losses decline.
On Wednesday, traders will look for clear signals from the administration and see if the wider card-and-consumer finance sector holds steady after the recent Davos comments. The next major event arrives Thursday afternoon, when Capital One delivers its report and fields questions on the call.
