Capital One stock crashes 10% after Trump unveils shock credit card cap

Core Viewpoint - Capital One stock (NYSE: COF) experienced a nearly 10% decline in pre-market trading following President Donald Trump's proposal to impose a one-year cap on credit card interest rates at 10% [1] Company Impact - The proposed interest rate cap is likely to significantly affect Capital One's revenue and profitability, as credit card interest rates are a major source of income for the company [1] - The stock's sharp decline reflects investor concerns over the potential regulatory changes and their implications for the company's financial performance [1] Industry Implications - The proposal could set a precedent for other financial institutions, potentially leading to broader changes in credit card interest rate policies across the industry [1] - If implemented, the cap on interest rates may lead to increased competition among credit card issuers, as companies may need to adjust their pricing strategies to remain attractive to consumers [1]