U.S. financial stocks fall after Trump calls for credit card rate cap

U.S. financial stocks declined in premarket trading after President Trump called for a one-year 10% cap on credit-card interest rates starting Jan. 20; analysts said imposing a cap would likely require legislation and its path was unclear.

President Donald Trump called for a one-year cap of 10 percent on credit-card interest rates beginning January 20, according to reports. The proposal did not include details on enforcement. U.S. financial stocks moved lower in premarket trading after the announcement. Analysts reported differing views on legal authority and potential effects on credit availability. Key points: - The article mentions shares of JPMorgan Chase and Bank of America fell about 3.2% and 2.5% respectively, with Citigroup down about 3.6% and Wells Fargo about 2.2%. - The article mentions American Express tumbled about 4%, while payment processors Visa and Mastercard slipped roughly 1.2% and 2%. - The article mentions consumer finance firms such as Synchrony Financial, Bread Financial and Capital One fell between about 8% and 10%, while buy-now-pay-later lender Affirm rose about 2%. - Analysts quoted in the article said a rate cap would likely require legislation and could exceed presidential authority, and some warned it could change how lenders offer credit. - The article notes the U.S. banking sector was scheduled to begin fourth-quarter earnings this week, with JPMorgan due to report on Tuesday. Summary: Market reaction trimmed share prices for a range of banks, payment processors and consumer lenders after the announced proposal. Whether a 10% cap could be enacted was reported as uncertain and could require congressional action; next steps are undetermined at this time.