US banking stocks were sharply lower in premarket trading on Monday after Donald Trump called for credit-card interest rates to be capped at 10% for one year. In the mix, Capital One was down 8%, Citigroup nearly 4%, while JPMorgan Chase and Bank of America were off 1.7% and 2%, respectively. Payment companies were not spared: Visa and Mastercard slipped nearly 2%, as did American Express (-4%) and Wells Fargo (-1%).

In a post published on Friday on Truth Social, President Trump reiterated a campaign promise, urging the measure to be implemented from January 20, 2026, the anniversary of his re-election. He described current credit-card company practices as a "scam”, targeting consumers. He also said on Sunday that banks that refused would be "in violation of the law,” - however, such a cap would require formal approval by Congress to take effect.

The prospect is prompting sharp market reactions, with analysts fearing a tightening of credit supply if bank margins were squeezed. In particular, low-income consumers could see their access to credit restricted. At the same time, shares in the "buy now, pay later” sector, seen as an alternative to credit cards, were up in early trading, as investors anticipated increased demand for these solutions if traditional credit were to be regulated. Affirm Holdings and PayPal were up 3% and 1%, respectively, ahead of the Wall Street opening bell.