New York, January 20, 2026, 17:52 ET — After-hours
- JPMorgan shares were last down about 3% after the bell after falling during the regular session.
- Traders focused on uncertainty around a proposed 10% cap on credit-card interest rates tied to a Jan. 20 deadline.
- Wall Street’s broader selloff added pressure as investors digested fresh tariff threats.
JPMorgan Chase & Co (JPM.N) shares were last down 3.1% at $302.74 in after-hours trading on Tuesday. The stock ranged from $301.88 to $311.10 during the session.
U.S. bank stocks slid as investors waited to see whether the Trump administration’s Jan. 20 deadline tied to a proposed 10% cap on credit-card interest rates would translate into action. JPMorgan fell about 3% and the S&P 500 Banks index dropped 2.3%; Citigroup and Wells Fargo also fell, as JPMorgan executives warned last week the cap could hurt consumers and said legal options were on the table. Brian Jacobsen, chief economic strategist at Annex Wealth Management, called it an “overhang” that “could clear quickly” if it becomes a call for Congress. 1
Banks still lack basic detail on what, if anything, happens when issuers do not comply, and regulatory experts say a cap would likely require legislation. White House spokeswoman Karoline Leavitt said the president has an “expectation” that companies will comply, while adviser Kevin Hassett floated voluntary “Trump cards” as a workaround. Stephen Biggar, a banking analyst at Argus Research, said he expects “an ongoing conversation between the industry and the administration,” but he was unsure what happens on the ground. 2
Citigroup CEO Jane Fraser said she does not expect Congress to approve a rate cap. “The president is right in focusing on affordability,” she said, but added: “But capping rates would not be good for the U.S. economy.” 3
The American Bankers Association said a proposed 10% cap would result in up to 159 million Americans losing access to credit, based on its analysis of issuer data. It put the number of affected cardholders at at least 137 million. 4
The stock drop also came in a rough tape. The S&P 500 fell 2.06% on Tuesday and the Nasdaq dropped 2.39% in a broad selloff that Reuters linked to renewed tariff threats from President Donald Trump against Europe. 5
The math is simple enough. Credit-card annual percentage rates, or APRs, often sit well above 10%, so a cap forces issuers to reprice risk, cut rewards, tighten approval or some mix of all three.
Consumer rates have been drifting lower after the Federal Reserve’s 2025 rate cuts, but the average APR stood at 19.7% at the end of December, Bankrate data cited by CBS News showed. JPMorgan CFO Jeremy Barnum said the cap would be bad for consumers because “people will lose access to credit,” CBS reported. 6
Treasury Secretary Scott Bessent, speaking from Davos, said it was “not unreasonable” to have a discussion about credit-card company practices. He also said Democratic Senator Elizabeth Warren told him Trump reached out to discuss the cap idea. 7
But the downside case is messy: if the cap moves from talk to enforceable policy, issuers could pull back credit quickly, and banks could face a second hit if rewards and fees become the next political target. Trump has also said he will sue JPMorgan within the next two weeks over alleged “debanking,” adding another headline risk for the lender. 8
Investors will look to Wednesday’s session for any White House follow-through after the Jan. 20 deadline and whether lawmakers pick up the issue. Markets are also watching Trump’s new tariff plan, which the Associated Press reported would begin in February. 9
