Capital One stock slides nearly 4% as credit-card rate cap deadline weighs on lenders
Capital One Financial shares dropped 3.7% to $230.18 in Tuesday afternoon trading, underperforming the S&P 500 banks index, which fell 1.2%. Investors are weighing whether the Trump administration will push forward with a proposed one-year, 10% cap on credit-card interest rates after the Jan. 20 deadline, amid doubts about enforcing it without Congress. “For now, it’s an overhang,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters. The American Bankers Association warned that up to 159 million cardholders could lose access. Meanwhile, TD Cowen anticipates a “political compromise” involving stripped-down low-rate cards and voluntary “Trump cards” as potential workarounds.
