Trump’s 10% Credit Card Rate Cap Shakes Banks While Nvidia Faces China Export Hurdles

Will your credit card interest rate soon plunge to 10%? President Donald Trump's latest proposal has sent shockwaves through the banking sector, overshadowing a cooling inflation report that would have otherwise cheered investors.

Trump Credit Card Rate Cap Weighs on Wall Street Banks

Shares of major financial institutions, including Wells Fargo, Citigroup, and Bank of America, retreated following their earnings reports. The primary culprit wasn't just the numbers, but Trump's call for a one-year, 10% interest rate cap on credit cards. This proposal threatens a significant revenue stream for traditional banks.

Despite the regulatory cloud, some earnings surprised to the upside. Goldman Sachs reported an EPS of $14.01, beating the $11.67 estimate. Morgan Stanley also topped forecasts, with its stock rising over 2% in premarket trading as it navigated a complex macroeconomic landscape.

Nvidia H200 China Export Approval Meets Uncertainty

The tech sector faced its own headwinds. Trump confirmed the U.S. would allow Nvidia to sell H200 AI chips to China, provided the U.S. government receives a 25% cut of the sales. While Trump described the chips as 'pretty good level,' their acceptance in China is now in doubt.

According to Reuters, Chinese customs authorities have reportedly instructed agents that these chips are not permitted to enter the country. This move signals a potential boycott by Beijing against intentionally throttled hardware, sending Nvidia shares lower as investors weigh the loss of a major market.

Geopolitical Tensions in Greenland and Netflix’s All-Cash Bid

Tensions between the U.S., Denmark, and Greenland escalated following a White House meeting. Trump maintains that U.S. control of the territory is essential, while Danish officials have labeled such plans as 'totally unacceptable.' In a show of force, five NATO nations are deploying troops for exercises in the region.

In the media space, Netflix is reportedly pivoting its strategy to acquire Warner Bros. Discovery. CNBC's David Faber reports that Netflix will likely offer an all-cash deal to bypass lengthy shareholder votes, potentially closing the deal as early as late February.