JPMorgan Chase & Co. shares fell Monday after U.S. President Donald Trump proposed a one-year, 10% cap on credit card interest rates. The proposal triggered a broad sell-off across financial stocks.
JPMorgan dropped 2.5% in premarket trading. Investors reacted to the potential impact on the bank’s significant credit card business.
The suggested rate cap sits substantially below the national average. This raises concerns about the profitability of credit card lending for major issuers, including JPMorgan.
A J.P. Morgan analyst noted the policy could push consumers toward more expensive forms of debt. The analyst argued the cap fails to address underlying financial issues.