Why did American Express stock fall today?

It fell 4.27% to $359.59 after the Trump credit card cap proposal raised regulatory risk for card issuers. Markets priced in possible margin compression, tighter underwriting, and weaker rewards, which can weigh on near-term earnings and purchase volumes. High volume confirmed broad selling across the payments group.

What is the Trump credit card cap and why does it matter?

It is a proposed one-year 10% APR ceiling starting January 20, 2026. A hard cap would cut interest income on revolving balances and could prompt issuers to scale back rewards and tighten credit. The scope, legal durability, and implementation details will determine the true earnings impact.

How does this affect Canadian investors?

Canadians with U.S. financial exposure could see more volatility in card networks and issuers. Currency choices in CAD accounts also matter. Watch for any changes to cross-border rewards and merchant partnerships. Diversifying across networks, processors, and banks can reduce single-name risk while policy terms become clearer.

Is AXP expensive after the drop?

AXP trades at a 24.18 P/E with a 0.91% dividend yield and strong ROE of 33.41%. The mix suggests quality but not a bargain. Analyst views are split with 6 Buys, 6 Holds, and 3 Sells. We prefer disciplined entries and reassessment after earnings and policy clarity.

What dates and levels should I watch next?

Watch January 20, 2026 for policy timing, plus AXP’s January 30 earnings for guidance on margins and credit. Near term, our models suggest $356 to $390 ranges. Price stabilization above mid-370s with improving breadth would signal reduced downside momentum.

Global Market Insights

AXP Stock Today: January 12 Trump 10% Card-Rate Cap Hits Issuers

ByDanny Kontos January 13, 2026January 13, 2026

American Express stock fell after the Trump credit card cap proposal put a 10% ceiling on APRs for one year starting January 20, 2026. American Express stock (AXP) closed at $359.59, down 4.27% on heavy volume. The move signals higher regulatory risk and possible pressure on card margins, rewards, and underwriting. For Canadian investors with U.S. financial exposure, today’s reset affects credit-sensitive names and sector ETFs. We explain the drivers, the numbers to track, and what this could mean for portfolios in Canada.