U.S. bank stocks dipped on Tuesday on market uncertainty over the Trump administration’s deadline to cap credit card interest rates at 10%.
The administration claims the proposed cap will increase affordability for consumers, while banks fear it may reduce credit availability due to inability to price the risk of unsecured credit card loans.
JPMorgan Chase (JPM.N) dipped 3.1% and Citigroup (C.N) fell 4.4%. WFC.N, opens new tab, fell 1.9%.
According to Brian Jacobsen, chief economic strategist at Annex Wealth Management, the current overhang might be resolved swiftly if Congress takes action instead of the executive office.