New York, Jan 19, 2026, 15:30 ET — Market closed.
- American Express ended Friday up 2.1%, closing at $364.79.
- U.S. markets took Monday off for Martin Luther King Jr. Day; attention now turns to Tuesday’s reopening.
- With AmEx set to report earnings on Jan. 30, investors are digesting a White House proposal to cap credit-card interest rates at 10%.
American Express shares reopen Tuesday under pressure from a new policy threat: President Donald Trump’s demand for a 10% ceiling on credit card interest rates. Banks must comply by Jan. 20. 1
The stock closed up 2.1% at $364.79 on Friday, finishing the session on a positive note.
The reason this matters now is straightforward. A hard cap on rates would cut into interest income throughout the card industry, potentially pushing issuers to reconsider rewards, credit limits, and approval criteria — the very drivers behind much of the spending growth. 2
The timing couldn’t be more awkward. U.S. stock and bond markets stayed shut Monday for Martin Luther King Jr. Day, forcing traders to process weekend news and make their moves all at once when trading resumed Tuesday. 3
American Express, relying heavily on fees from wealthy cardholders and travel spending plus lending, isn’t as sensitive to interest rates as many mass-market issuers. Still, any move that cuts into revolving balances or squeezes rewards economics could hit its revenue and marketing budgets.
The White House hasn’t specified any penalties for companies that ignore the directive. Press Secretary Karoline Leavitt told reporters the president “has an expectation” that card issuers will limit rates to 10%, but didn’t detail any enforcement measures. 1
Bank executives haven’t minced words on the trade-offs. Citigroup CFO Mark Mason called a cap “not something we could or would support,” warning it would tighten credit and hurt the economy. Still, he indicated a readiness to work with the administration. 1
A rate cap is the APR—the annual percentage rate—charged on outstanding balances. Simply put, it sets a ceiling on what card issuers can charge borrowers who carry a balance month to month.
Early indications show some companies are testing how to navigate the new rules without overhauling their business models. Fintech Bilt rolled out new cards and announced a 10% cap on interest rates for new purchases, lasting a year. CEO Ankur Jain commented, “If (a credit card rate cap) is going to happen, we’d rather be at the forefront.” 1
Friday’s close saw mixed results among peers. Visa nudged up 0.2%, but Mastercard dipped 0.6%, highlighting how the payments-and-cards sector can move on distinct factors despite sharing the same headline news.
The risk is clear-cut. Should the White House impose a meaningful, enforceable cap—or if Congress steps in—investors could start pricing in reduced industry profits, smaller payouts, and stricter credit rules that might curb spending. 2
American Express’s next major event is its fourth-quarter earnings call on Jan. 30 at 8:30 a.m. ET. Investors will be tuning in for insights on the latest policy developments and what they mean for cardmember spending and credit trends. 4
