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Trump’s 10% Credit‑Card Cap Sparks Market Jolt as Lenders Tumble

  A sharp sell‑off hit major U.S. credit‑card lenders after President Donald Trump announced a proposed one‑year cap limiting credit‑card interest rates to 10%, a move that immediately rattled financial markets and triggered pushback from banks. U.S. credit‑card lenders were hammered in early trading after President Donald Trump unveiled a proposal to cap credit‑card interest rates at 10% for one year , beginning January 20. The announcement, posted late Friday on Truth Social, sent shares of major issuers sharply lower as investors reacted to the potential hit to a key profit stream. Capital One and Synchrony Financial plunged as much as 10% in premarket trading , while American Express and Citigroup slid around 4% , and larger banks such as JPMorgan Chase and Bank of America fell roughly 2–3%.  The proposal aims to address affordability concerns, with Trump criticizing current rates that often exceed 20% to 30%. Despite the market shock, analysts caution that the plan fac...
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U.S. Markets Tumble on Earnings, Bond Yields

U.S. stocks fell on Wednesday, October 25, 2023, as investors digested mixed earnings reports from Microsoft and Alphabet while Treasury yields pushed higher. The Dow Jones Industrial Average dropped 0.32% to 33,035.93 points, the S&P 500 index slid 1.43% to 4,186.77 points, and the Nasdaq composite index plunged 2.43% to 12,821.22 points.

Alphabet shares slid more than 9% after the Google parent beat on earnings and revenue but fell short in its cloud business. Microsoft shares rose 3% after its own double beat showed its bets on AI were paying off for its cloud segment. Other tech giants such as Amazon and Meta also declined ahead of their earnings reports.

The earnings season also coincided with a surge in bond yields, as the Bank of Canada and the U.S. Federal Reserve signaled their readiness to fight inflation by keeping interest rates high. The BoC held its key rate at 5.0%, but lowered its 2023 growth forecast to 1.2%. The Fed is expected to announce its tapering plans next week.

The higher yields weighed on rate-sensitive sectors such as technology and real estate, but boosted energy and financial stocks. The Canadian dollar traded for 79.23 cents US compared with 79.28 cents US on Tuesday.



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