economy
January 28, 2026
Financials is the worst S&P sector in 2026. The credit card cap debate may be to blame
The underperformance, however, hasn't been universal within the group's members.
TL;DR
- Financials is the worst performing sector in the S&P 500 in 2026, down over 3%.
- Lingering fears over President Trump's proposed credit card interest rate cap at 10% are dragging down some financial stocks.
- Banks with significant credit card exposure, like JPMorgan Chase and Bank of America, are down, while pure investment banks and regional banks are up.
- Despite low support for the proposed cap in Congress, the rhetoric continues to weigh on exposed stocks.
- Regional banks are outperforming due to cheaper valuations and a steeper yield curve, recovering from the 2023 crisis.
- A 'buy the dip' strategy, common with past Trump policies, has not been observed with credit card companies like Visa and Mastercard.
- Policy clarity and fewer regulatory issues are needed to help credit card companies recover.
Continue reading the original article