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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. Futures Edge Higher Amid Trump Rally and Anticipation of Fed’s Rate Decision

 

U.S. stock futures are showing modest gains following a significant rally sparked by Donald Trump’s return to the presidency. Investors are now keenly awaiting the Federal Reserve’s upcoming interest rate decision.

Market Reaction:

The markets have reacted positively to Trump’s victory, with expectations of lower corporate taxes and deregulation driving the rally. The Dow, S&P 500, and Nasdaq all saw substantial gains, with the Dow E-minis up 82 points (0.18%), S&P 500 E-minis up 11.5 points (0.19%), and Nasdaq 100 E-minis up 49 points (0.23%) in premarket trading.

Federal Reserve’s Decision:

Traders are largely anticipating a 25-basis point rate cut from the Federal Reserve. The central bank’s policy statement will be closely scrutinized for any indications of future monetary easing. The market’s focus is also on whether the Republican party will maintain control of the House of Representatives, which could further influence economic policies.

Investor Sentiment:

Investor sentiment remains cautiously optimistic. While some stocks that surged post-election have given back gains, others like Qualcomm have continued to perform well. The VIX, Wall Street’s “fear gauge,” is trading at a six-week low, indicating reduced market volatility.

As the day progresses, all eyes will be on the Federal Reserve’s announcement and its potential impact on the markets.


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