Visa's stock fell sharply by 5.03% during Tuesday's trading session, underperforming the broader market. The decline was part of a sector-wide drop for payment processors, with Mastercard and American Express also seeing losses.
The sell-off was triggered by market concerns over a proposal from former U.S. President Donald Trump to cap credit card interest rates at 10%. Analysts worry such a move could significantly impact the profitability models of banks and credit card companies, including Visa. JPMorgan's CFO had earlier warned that such a rate cap could hurt both consumers and the economy, adding to the negative sentiment.
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