Major credit card and payments stocks took a hit after President Donald Trump proposed a one-year cap on credit card interest rates. In a weekend social media post, Trump called for a 10% ceiling on annual percentage rates, arguing current levels in the 20-30% range are ripping off consumers. Shares of Capital One and Discover dropped over 6%, while American Express and JPMorgan Chase also fell.

Analysts at Raymond James quickly noted the President cannot impose such a limit unilaterally; Congress would need to pass legislation. They view the probability of that happening as low, though the political risk has clearly risen. If a cap did pass, issuers would likely tighten credit standards, potentially cutting off access to higher-risk borrowers the policy aims to help.

Conversely, Mizuho analyst Dan Dolev suggested alternative lenders like Affirm and Upstart could benefit if traditional banks retreat from subprime lending. The industry is bracing for a fight, with lobbyists ready to argue that rate caps would ultimately harm the very consumers they intend to protect.