American Express shares tumbled nearly 7% over two trading sessions following President Trump’s proposal to cap credit card interest rates at 10%. Trading volumes spiked by 45% compared with the 30-day daily average, as institutional investors rebalanced portfolios to reflect heightened regulatory risk. The stock’s decline outpaced the broader financial sector, where peer credit card issuers fell on average 4%.

Through the first nine months of 2025, American Express reported revenue of $53.2 billion, up 9% year-over-year, driven by a 12% increase in average spend per cardholder and a 7% rise in new account openings. Net income of $8.4 billion rose 5%, underpinned by stable card member lending balances and disciplined expense management. Analysts note that a 10% interest-rate ceiling could erode the company’s net interest margin, currently near 11%, and force repricing of premium products that command higher yields.

AXP management has engaged with federal officials to explore voluntary credit-access programs similar to the administration’s so-called 'Trump card' initiative, aiming to preserve lending to consumers in the sub-prime and near-prime segments. CEO Stephen J. Squeri emphasized on the recent earnings call that the company would adapt pricing structures—potentially by raising annual fees on high-end products—to offset any regulatory squeeze on interest income. Investors now await the outcome of White House–bank negotiations, with some strategists estimating a regulatory resolution by March could trigger a 10% rebound in the stock.