New York, January 12, 2026, 20:22 EST — The market has closed.
- Shares of SoFi slipped roughly 3% following a volatile session that saw a brief uptick earlier on
- CEO Anthony Noto backed the proposed 10% cap on credit-card APRs, though critics warned it could trigger a credit squeeze
- Investors are eyeing Tuesday’s U.S. CPI release and SoFi’s earnings report due January 30
Shares of SoFi Technologies (SOFI.O) finished Monday down 3% at $26.60, slipping after earlier climbing as much as 2.3% during a choppy session.
The late slide is significant since SoFi is a major player in personal loans. Washington’s renewed scrutiny on credit-card pricing has traders revisiting their forecasts for consumer borrowing. A cap on credit-card APRs (the interest rate charged on cards) might force banks to tighten credit limits and push borrowers toward installment loans. But it could also dampen demand if credit availability shrinks.
On Friday, U.S. President Donald Trump proposed a one-year cap on credit-card interest rates at 10%, set to begin Jan. 20, but didn’t specify how the limit would be enforced. Wall Street remains skeptical about its feasibility without Congressional approval. J.P. Morgan analyst Vivek Juneja cautioned the move “could push consumers towards more expensive debt,” highlighting potential ripple effects on other types of unsecured borrowing. 1
SoFi CEO Anthony Noto saw the proposal as a chance for personal-loan companies, tweeting on X: “That creates a large void—one that @SoFi personal loans are well positioned to fill.” Hedge-fund manager Bill Ackman disagreed, labeling it: “This is a mistake President,” and warned that issuers might cut cards for higher-risk borrowers. 2
Monday’s tape looked shaky for consumer-credit stocks. Affirm dropped around 6.6%, and Upstart tumbled nearly 7.9%. Visa and Mastercard dipped about 1.8% and 1.6%, respectively, while JPMorgan slipped roughly 1.5%. The wider market showed a bit of strength, with the S&P 500 ETF edging up about 0.2%.
SoFi bulls are focused on whether policy moves will push banks to pull back on credit-card lending quicker than other credit sectors can grow. Personal loans might seem appealing amid rising card rates, but they remain unsecured debt and usually adjust in line with funding costs and risk tolerance.
There’s a downside risk too. The cap might hit a wall in Congress, be diluted, or grow to the point that it squeezes nonbank lenders’ profits. If the debate unsettles issuers enough to pull back on credit lines, softer consumer spending could push delinquencies higher throughout the loan portfolio.
Ahead of Tuesday’s open, investors are watching the U.S. consumer price index for December, set for release at 8:30 a.m. ET. Producer price data follows later this week. Strong inflation numbers usually drive bond yields higher and weigh on valuations for rate-sensitive growth and fintech stocks. 3
SoFi’s next big event is its quarterly earnings report. The company will release its Q4 and full-year 2025 results around 7 a.m. ET on Friday, Jan. 30. A conference call is set to follow an hour later at 8 a.m. ET. 4
