Shares of US Banking and Financial Services companies have slid in pre-market trading on Monday, January 12, in response to US President Donald Trump calling for a one-year cap on credit card interest rate at 10%.
Citi Group, Bank of America, JPMorgan, all part of the Dow Jones Industrial Average Index, fell between 2.5% to 4% in pre-market trading. As a result, futures on the Dow Jones have now extended their losses to 250 points.
Shares of pureplay credit card operators Visa and Mastercard are also down between 1.5% to 2.5% in pre-market trading.
According to a post by Trump on his Truth Social account, the cap will take effect from January 20.
“Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” Trump wrote, echoing a pledge he made during the 2024 presidential campaign.
“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies,” he added.
Futures on Wall Street are also trading with losses due to concerns over the US Federal Reserve’s independence after Chair Jerome Powell, in a video message, stated that the Fed was issued criminal indictment subpoena’s by the US Department of Justice.
Calling the move political, Powell said that the action is a result of the Fed taking interest rate decisions independent of the President’s preference.
Futures on the S&P 500 and Nasdaq are also down 55 points and 275 points respectively.
With Inputs from Agencies.