Why American Express (AXP) Stock Is Declining Today

Recent Developments Impacting American Express

American Express (NYSE:AXP) experienced a 4.1% decline in its share price during afternoon trading after former President Donald Trump proposed a 10% ceiling on credit card interest rates.

This suggested one-year limit sent ripples through the financial industry, triggering widespread selling. Trump argued on social media that Americans were being unfairly charged excessive interest. The announcement also affected other major financial institutions, including Capital One, Citigroup, Visa, and Mastercard, whose stocks also dropped. Some market observers pointed out that enacting such a cap would likely require legislative action and may not fall within the president’s direct authority.

Market reactions to headlines can sometimes be exaggerated, and significant price drops may create attractive entry points for investors seeking quality stocks. Considering this, could this be a favorable moment to invest in American Express?

Market Sentiment and Stock Performance

Historically, American Express shares have shown limited volatility, with only six instances of price swings greater than 5% in the past year. Against this backdrop, the latest decline suggests investors view the news as significant, though it may not fundamentally alter their outlook on the company.

Three months ago, the stock saw its largest move of the year, rising 6.3% after the company reported third-quarter 2025 results that exceeded Wall Street’s expectations for both revenue and earnings.

During that period, American Express generated $13.94 billion in revenue, marking an 11.8% year-over-year increase and surpassing analyst forecasts. Earnings reached $4.14 per share, up from $3.49 a year earlier and ahead of consensus estimates. This robust performance was driven by a notable uptick in customer spending, with total transaction volume climbing 8.7% to $479.2 billion, also beating projections. These strong results reflected healthy consumer activity and effective management, which helped boost investor confidence.

Since the start of the year, American Express shares have slipped 3.4%. However, with a current price of $359.87, the stock remains near its 52-week high of $384.89 set in December 2025. An investor who purchased $1,000 of American Express stock five years ago would now see that investment grow to $2,959.

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