New York, Jan 28, 2026, 16:02 (EST) — After-hours
- Shares of Capital One gained roughly 0.8% in Wednesday’s regular session, closing near $218.89
- The Fed held rates steady at 3.50%-3.75%, while Treasury yields edged up following the announcement
- Traders are watching closely as Washington debates a proposed 10% cap on credit-card interest rates
Shares of Capital One Financial Corp (COF.N) gained roughly 0.8% on Wednesday, closing near $218.89.
The Federal Reserve kept its benchmark rate steady in the 3.50%-3.75% range, while once again calling inflation “somewhat elevated.” Following the announcement, the 10-year Treasury yield climbed to about 4.26%, and interest rate futures moved to price in a rate cut at the June 16-17 meeting. Omair Sharif, president of Inflation Insights, described the statement as “somewhat more optimistic on the labor market,” with risks viewed as “balanced.” (Reuters)
Why it matters for Capital One: investors want to figure out how long elevated borrowing costs can prop up card revenue before pushing more customers into financial strain. The bank is also urging the market to look past consumer lending after agreeing to acquire corporate card and expense platform Brex for $5.15 billion in a mix of stock and cash. Brex CEO Pedro Franceschi will remain at the helm of the business. (Nasdaq)
Capital One showed late-session gains, standing out against a weaker sector mood. The Financial Select Sector SPDR Fund (XLF) dipped roughly 0.2%. Meanwhile, Bank of America dropped close to 1%, Wells Fargo slid about 1.1%, and American Express declined near 0.7%.
Capital One slipped 1.39% to $217.11 a day earlier, lagging behind a mixed market. The shares remain roughly 16% off their 52-week peak of $259.64 hit on Jan. 6. (MarketWatch)
Shares have fluctuated since Capital One reported earnings on Jan. 22 and revealed its deal with Brex. The bank posted a 54% surge in net interest income, reaching $12.47 billion—the gap between loan earnings and deposit costs. CEO Richard Fairbank cautioned analysts that a 10% cap on card rates might lead to “unintended consequences.” (Reuters)
The policy cloud lingers. At an airline event in Dublin Wednesday, BK Associates managing director Pooja Gardemal warned a 10% cap would slash “a huge chunk of profit” from credit cards, tightening the screws on co-branded rewards. Barclays managing director Michael Miller dismissed the idea as “an unlikely outcome” that the proposal would actually “stick.” (Reuters)
Thursday’s revised Productivity and Costs report for Q3 is the next key data point, set for release at 8:30 a.m. ET. (Bureau of Labor Statistics)
Friday at 8:30 a.m. ET, the December Producer Price Index arrives, a key inflation indicator that often moves Treasury yields and rattles bank stocks. (Bureau of Labor Statistics)
Looking ahead, the BEA will deliver a more comprehensive update on growth and household finances on Feb. 20. That’s when the advance GDP estimate for Q4 and the December Personal Income and Outlays report are now set to drop, delayed from the original Jan. 29 schedule. (Bea)
