New York, January 24, 2026, 15:18 EST — The market has closed.
- Wells Fargo shares fell Friday as traders grappled with the rate outlook and new policy uncertainty surrounding credit cards.
- CEO Charlie Scharf cautioned that a broad 10% cap on credit-card rates might reduce credit availability.
- Bank stocks will be watching closely for the Federal Reserve’s decision on Jan. 28.
Shares of Wells Fargo & Company (WFC.N) dropped 1.2% on Friday, ending the day at $86.96. Investors appeared more focused on Washington and interest rate developments than the bank’s latest news.
Wells Fargo CEO Charlie Scharf told CNBC that imposing a broad 10% cap on credit card interest rates could pose significant challenges, warning it “could lead to a meaningful reduction in credit.” He also mentioned that rates are expected to trend lower. 1
The conversation is already shifting among peers. Bank of America is exploring new credit cards with rates around 10%, and Citigroup is mulling similar moves. Analysts note that a wider cap would probably need legislation, and the White House hasn’t specified enforcement details. 2
The broader market dragged lower. The Dow dropped 0.58% on Friday, while the S&P 500 finished mostly flat after Intel slid on a disappointing forecast. “We feel pretty good about where we are today,” Jason Blackwell, chief investment strategist at Focus Partners Wealth, said, though he cautioned that volatility may stick around. 3
Wells Fargo filed an 8-K on Friday revealing it issued $8 billion in medium-term notes. The offering included a $500 million floating-rate tranche maturing in 2030, along with fixed-to-floating notes due in 2030, 2037, and 2047. Medium-term notes refer to debt sold to investors, and “fixed-to-floating” indicates the coupon starts fixed, then switches to a variable rate. 4
Trading remained active Friday, with roughly 14.8 million Wells Fargo shares swapping hands—just above the stock’s 50-day average. The share price still sits about 11% below its 52-week peak hit on Jan. 5, according to MarketWatch data. 5
The Federal Reserve takes center stage next week with its January meeting set for Jan. 27-28. The policy announcement comes out at 2:00 p.m. ET Wednesday, followed by a press briefing at 2:30 p.m. ET. 6
Lenders care about which way rates move since it affects the spread between loan earnings and deposit costs. Scharf’s bet on falling rates keeps the margin conversation alive for Wells Fargo as the week kicks off.
Wells Fargo’s drop on Friday coincided with weakness across major banks. JPMorgan Chase slid roughly 2%, Bank of America dipped around 1.4%, and Citigroup lost about 1.8%.
The downside risk remains. Should a credit-card cap become enforceable, issuers might tighten lending or overhaul rewards programs, forcing investors to reassess consumer-lending profits. Plus, a steeper rate drop could further compress bank margins.
Wells Fargo stock will take its cue from Monday’s open on Jan. 26, but the real trigger comes with the Fed on Jan. 28 — and any sharper indication from Washington on whether the credit-card cap is just chatter, pending legislation, or edging toward an enforceable rule.
