U.S. stocks ended lower on Tuesday, led by a drop in financial shares as comments from JPMorgan executives added to worries about the U.S.President’s proposal for a cap on credit‑card rates. Investors also digested a report from earlier in the day showing that a reading on inflation for December came in as expected, leaving intact market expectations for interest rate cuts from the Federal Reserve this year. Top JPMorgan JPM.N executives including CEO Jamie Dimon warned that the President’s proposed 10% cap on credit card interest rates would severely hurt consumers. That revived a recent selloff in financials over the President’s proposed one-year cap of 10% on credit card interest rates. The President last week proposed the cap for one year, starting on January 20.
Shares of Visa V.N and Mastercard MA.N fell, while the financial sector .SPSY helped lead declines in the S&P 500. Shares of JPMorgan also fell. The bank reported a better-than-expected quarterly profit but also a drop in investment banking fees. Other big banks, due to report their quarterly numbers later this week, were also lower even as analysts expected most banks to post stronger results for the last quarter.
Delta Air Lines DAL.N shares also eased as the midpoint of its 2026 profit forecast fell short of analysts’ expectations. According to preliminary data, the S&P 500 .SPX lost 13.97 points, or 0.20%, to end at 6,963.30 points, while the Nasdaq Composite .IXIC lost 22.70 points, or 0.10%, to 23,711.20. The Dow Jones Industrial Average .DJI fell 394.97 points, or 0.81%, to 49,195.23.
Reporting by Caroline Valetkevitch in New York; Additional reporting by Medha Singh and Pranav Kashyap in Bengaluru; Editing by Maju Samuel and Matthew Lewis.
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