US Credit Card, Fintech Stocks Tumble Amid Rising Tariff Fears

Shares of U.S. credit card companies have fallen significantly following President Trump's announcement of a 10% baseline tariff on imports, with American Express down 4.1%, Visa falling 2.9%, and Mastercard slipping 2.8%. This move is raising concerns about weakened consumer confidence and potential declines in credit card spending, as the tariffs are expected to impact economies globally. The fintech sector has also been affected, with companies like Affirm and PayPal experiencing substantial stock drops due to their reliance on consumer spending. Analysts suggest that payment firms face increased cyclical risks linked to these tariffs, while larger companies may be better positioned to withstand the volatility. The broader market's reaction has resulted in nearly $2 trillion in losses in the S&P 500, with significant impacts felt across various sectors. Overall, the trade tensions are amplifying recession fears, leading to speculation about potential interest rate cuts by the Federal Reserve.