Market Overview - U.S. stock markets are experiencing a mixed session with major indexes showing slight pullbacks as investors assess inflation data and fourth-quarter earnings reports [1][2] - The S&P 500 Index is down less than 0.1%, the Nasdaq Composite Index has slipped 0.2%, and the Dow Jones Industrial Average has fallen 0.6% [2] Economic Indicators - The December Consumer Price Index (CPI) data shows a 2.7% year-over-year rise in headline inflation, matching expectations, while core inflation is at 2.6%, slightly below the projected 2.8% [4] - The 10-year Treasury yield has decreased to below 4.18% from 4.20% following the CPI data release, indicating potential room for Federal Reserve interest rate cuts [4] Earnings Reports - JPMorgan Chase (JPM) reported adjusted profits exceeding expectations but with slightly lower revenue, leading to a 2.5% decline in shares [7] - Delta Air Lines (DAL) shares fell nearly 6% pre-bell and 1.5% in recent trading after forecasting lower-than-expected profit growth for fiscal 2026, despite reporting operating revenue of $16.00 billion [7] - L3Harris Technologies (LHX) shares surged 3% to an all-time high following plans to spin off its Missile Solutions business, supported by a $1 billion government investment [8] Sector Movements - A sector rotation trend has been observed since late December 2025, with the Dow Jones and small-cap Russell 2000 outperforming AI-heavy mega-cap technology stocks [3] Corporate Developments - Sun Country Airlines Holdings Inc. (SNCY) shares jumped 10.6% after announcing an acquisition agreement with Allegiant Travel (ALGT) valued at $18.89 per share [10] - Posco Holdings Inc. (PKX) shares rose 12% after raising $700 million in global bond markets and providing a positive earnings outlook for 2026 [11] Political Impact - President Trump's proposal to cap credit card interest rates at 10% has negatively impacted financial stocks, with Visa (V) and Mastercard (MA) down 5%, and American Express Company (AXP) down 4.3% [9]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Sens. Roger Marshall, a Republican, and Dick Durbin, a Democrat, reintroduced their Credit Card Competition Act proposal Tuesday, resurrecting their years-long effort to make a card processing network other than Visa and Mastercard available to merchants whenever consumers swipe their credit cards.  The two networks have long dominated the industry in working with ...

Core Viewpoint - The payment sector continues to decline, with significant drops in major companies' stock prices, driven by concerns over potential regulatory changes affecting credit card interest rates [1] Group 1: Stock Performance - Bread Financial (BFH.US) and Synchrony Financial (SYF.US) both fell over 1% [1] - American Express (AXP.UE) declined nearly 1% [1] - Visa (V.US) dropped over 3.8% and Mastercard (MA.US) fell by 3.5% [1] - Affirm Holdings (AFRM.US) experienced a decline of over 5% [1] - Major bank stocks also decreased, with Bank of America (BAC.US) and Citigroup (C.US) down by 0.5%, and JPMorgan Chase (JPM.US) falling over 2.6% [1] Group 2: Market Concerns - President Trump’s call for a 10% cap on credit card interest rates has raised concerns about the profitability of banks and credit card companies [1]

Core Insights - President Trump proposed capping credit card interest rates at 10% for one year, citing that current rates of 20% to 30% are unfair to consumers [1][5] - The implementation details of this cap remain unclear, raising questions about its feasibility and duration [5] Stock Market Impact - Capital One Financial (COF) shares fell over 6%, American Express (AXP) dropped 4%, and Citigroup (C) decreased by 3% following the announcement [2] - Other major banks like JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) saw declines of about 1%, while Synchrony Financial (SYF) experienced an over 8% drop [2] Consumer and Industry Implications - Capping interest rates may reduce borrowing costs for consumers but could negatively affect credit card issuers [3] - The upcoming earnings season for major banks, starting with JPMorgan, will provide executives an opportunity to address the potential impacts of this proposed cap [3] Regulatory Context - Financial stocks are also reacting to concerns regarding the Trump administration's pressure on the Federal Reserve, particularly after Fed Chair Jerome Powell mentioned a grand jury investigation into his previous testimony [4] - The investigation is perceived as politically motivated, occurring after the Fed did not lower rates as quickly as the administration desired [4]

Core Insights - Artificial intelligence is expected to significantly enhance online shopping experiences, potentially benefiting fintech stocks like Mastercard and Visa over competitors such as PayPal, Stripe, and Adyen [1][3][5] Group 1: Market Opportunities - The concept of "agentic commerce" is emerging, which relies on stable consumer spending, showing resilience despite job growth concerns and layoffs [2][3] - Analysts are favoring payment firms with diverse revenue streams and those that are less affected by consumer spending fluctuations [2] Group 2: AI Integration in Payments - AI agents are anticipated to play a crucial role in personalizing shopping experiences and facilitating transactions through integrated payment systems [4][5] - Mastercard and Visa are positioning their services as the default options in automated checkouts, which could lead to increased usage of their payment processors [5] Group 3: Competitive Landscape - PayPal is also involved in AI partnerships but faces challenges due to its exposure to retail and declining consumer discretionary spending in key markets [7][8] - Oppenheimer analysts maintain a neutral stance on PayPal until it can demonstrate accelerated profit growth and stabilization in consumer spending [8]

Key Takeaways AI-driven shopping experiences present new revenue opportunities for fintech companies, according to Oppenheimer's fintech analysts. Mastercard and Visa are the analysts' top large-cap picks. Artificial intelligence could soon transform online "window shopping." That could bode well for some fintech stocks. As AI agents start to manage the shopping experience—from prompt to payment—within a single chat or app, Mastercard (MA) and Visa (V) are among the firms that stand to benefit, acc ...

Key Takeaways Bank stocks fell Monday after President Donald Trump said over the weekend that credit card interest rates should be capped at 10% for at least a year.How a cap would be put in place and why for only a year remains unclear. A number of banking and financial stocks slumped Monday morning after President Donald Trump over the weekend suggested capping credit card interest rates. Trump posted on social media late Friday that Americans are being "ripped off" by interest rates of 20% to 30%, a ...

每经AI快讯，1月12日，VISA股价下跌3.6%，万事达股价下跌3.4%。 ...

本文源自：金融界AI电报 美国发卡机构的股价下跌，Visa(V.N)下跌3.2%，万事达(MA.N)下跌3%。 ...

Core Viewpoint - Trump's proposal to cap credit card interest rates at 10% has led to a significant decline in the stock prices of credit card issuers and related companies, raising concerns about the potential impact on their profitability and the credit market overall [1][2]. Group 1: Market Reaction - Following Trump's announcement, stocks of credit card companies such as Synchrony Financial and Bread Financial fell nearly 10%, while American Express and Citigroup dropped over 4% [1]. - Barclays experienced a significant intraday drop of 4.8%, marking its largest decline since October 17 of the previous year, highlighting the vulnerability of its U.S. retail banking segment, which heavily relies on credit card operations [3]. Group 2: Implications of the Proposal - If implemented, the proposed interest rate cap would result in the lowest credit card rates since 1994, with current average rates at 19.65% for general credit cards and 30.14% for store cards [2]. - Major banking associations have opposed the proposal, arguing it could push consumers towards less regulated and more expensive alternatives, potentially reducing access to credit for lower-income individuals [2]. - A study indicated that a similar interest rate cap in Illinois led to a 38% reduction in loans issued to subprime borrowers within six months, suggesting significant negative effects on credit availability [2]. Group 3: Company-Specific Insights - Barclays' U.S. retail banking division is projected to generate £3.6 billion in revenue by 2025, with credit card operations being a crucial component, contributing significantly to its income despite lower profit margins [3]. - Analysts suggest that any regulatory cap on credit card rates would have a pronounced impact on Barclays compared to European banks, emphasizing the importance of the U.S. market for its credit card business [3].