Stock Track | American Express Plunges 5.41% in Post-Market as Trump Proposes Credit-Card Rate Cap
Stock Track01-12 09:02
American Express (AXP) shares fell sharply by 5.41% in post-market trading, as investors reacted to President Donald Trump's surprise proposal to cap credit-card interest rates at 10%.
The proposal, announced via social media, could significantly impact credit-card companies' profitability. Analysts estimate that AXP's net interest margin could drop from 9.2% to 5.7% if the cap is implemented. While the proposal is seen as unlikely to pass due to lack of congressional support, the uncertainty has weighed heavily on AXP's stock.
Jefferies analyst John Hecht noted that such a cap could lead to tighter lending standards and weaker retail sales, further dampening investor sentiment toward financial-sector stocks like AXP.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
