US bank stocks slide on Trump’s threat to cap credit card rates
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The news: Shares in financial services firms including Capital One, Citigroup, JP Morgan Chase and Bank of America declined in premarket US trading on Monday following US President Donald Trump’s call for a one-year-cap on credit card interest rates at 10%.
The numbers: Shares in Capital One were down 7.5% at 8:30am ET (12:30am AEDT Tuesday), having dropped as much as 10% in earlier premarket trading. Citigroup was trading down 3.6%, JP Morgan declined 2.2%, while Bank of America had dipped 1.9%.
Payments giants American Express, Mastercard and Visa were down 3.5%, 2.1% and 1.8% respectively.
Shares in buy-now-pay-later player Affirm climbed 2.7%.
The context: The moves came as the market digested a Truth Social post shared by Trump on Friday, which read: “Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” Trump wrote, echoing a pledge he made during the 2024 presidential campaign.
“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies,” he added.
Trump did not disclose additional details about how a potential cap would function, but such a requirement would need approval from Congress.
