These Stocks Have Room to Run From Here

President Donald Trump has had it with high credit-card fees…

In a Truth Social post last month, he blasted the cost of charging purchases…

We will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest rates of 20 to 30%.

Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%.

The president is right about the sky-high cost of credit…

According to Bankrate, credit card rates sit at 19.6% today. That’s close to an all-time high.

But capping interest rates wouldn’t be a “silver bullet” solution to the problem, either.

And now that Trump’s deadline has passed, his rate-cap post looks more like political theatre than a true policy proposal. That could create a huge tailwind for one entire sector.

Let me explain…

The Credit-Cap Threat Is Over
Credit-card companies quickly pushed back against Trump’s plan. Industry groups warned that a 10% cap would lock millions of Americans out of the credit market. One study found that more than 80% of open credit-card accounts could lose access to credit under such a cap.

But by now, keen readers may be asking the obvious question…

If the rate cap was supposed to go into effect on January 20, why hasn’t the cost of credit budged?

Well, the truth is… the market doesn’t believe it’s real. Financial providers ignored the president’s tweet.

For one, Trump can’t cap credit-card rates on his own. That would require Congress.

On top of that, senior policymakers have effectively walked back the announcement. Days after the post, House Speaker Mike Johnson warned that a rate cap could create “negative secondary effects.”

Soon after, National Economic Council Director Kevin Hassett reframed the idea entirely. Instead of a mandate, he suggested banks might voluntarily offer new credit offerings for low-income borrowers…

Our expectation is that it won’t necessarily require legislation, because there will be really great new “Trump cards” presented for folks that are voluntarily provided by the banks.

And markets have adjusted accordingly…

As fears of a rate cap fade, bank stocks are catching a bid.

We can see the market’s reaction to the credit-cap roller coaster by looking at JPMorgan Chase (JPM), America’s largest bank. With a market cap of more than $840 billion, the bank acts as a bellwether for the broader banking sector.

After Trump’s post, shares slid nearly 10%. But after the deadline passed with no action, the stock is rebounding. Take a look…

The message from the market is clear: the threat has passed.

And this isn’t just a tailwind for America’s biggest bank. It will propel companies all across the banking industry.

For example, the State Street SPDR S&P Regional Banking Fund (KRE) reflects the performance of regional banks on the whole. These banks are subject to the same credit policies as big banks.

With the rate-cap threat in the rearview mirror, KRE is closing in on a new all-time high. Take a look…

Banks of all sizes are enjoying a solid boost as the credit-cap roller coaster comes to an end.

With this political risk off the table, bank stocks have room to run from here.

Good investing,

Chris Igou

Source: Daily Wealth