Capital One shares dropped more than 6% on Monday after President Donald Trump targeted a key way that our favorite credit card issuer makes money. The weakness in Capital One followed Trump’s call for a one-year, 10% cap on credit card rates to take effect on Jan. 20. In his Truth Social post late Friday , the president did not provide any more details on how such a cap would work. While it would require approval from Congress, Trump told reporters Sunday that if banks don’t act by the deadline, they would be “in violation of the law.” The proposal isn’t entirely surprising, given Trump’s criticism of high credit card rates during his 2024 presidential campaign. Bipartisan bills have also been previously introduced to limit credit card interest rates at 10%, a figure significantly below Bankrate’s reported average of 19.65%. Other credit card firms, including American Express , and buy-now-pay-later companies, such as Affirm , also saw their stocks decline on the news. Wall Street analysts expressed skepticism about Trump’s plan. JPMorgan described the proposal as a “high-severity, low-probability risk” — and, if implemented, “would fundamentally reshape the card industry, substantially reducing profitability for issuers and access to credit for consumers.” JPMorgan did still raise its Capital One price target to $256 from $237 as part of its fourth-quarter consumer …
