Shares of banks and other financial institutions fell amid concerns about potential upheaval at the Federal Reserve and new credit-card regulations.
JPMorgan Chase fell ahead of a fourth-quarter update from the largest U.S. bank by assets.
"When financials report, sometimes there's more to it than just what meets the [eye] because we're trying to glean what's happening in the underlying economy," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "Lately, it seems to be more centralized planning."
President Donald Trump suggested that he will cap credit-card interest rates at 10%. Even if Trump's proposal is never enacted, the volatility reflects a new risk that investors must negotiate -- the president's social-media cross-hairs, said Joyce. Bank analysts at brokerage Truist warned the proposed cap would likely force lenders to eliminate subprime credit accounts entirely to mitigate risk.
UBS Group called on Switzerland to reassess alternatives to its proposal to increase capital requirements, as the banking group said the plan would hurt its operations and place a burden on the country's economy.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-12-26 1752ET
