2026-01-12 19:45:13

The financial sector is taking a hit as interest rate expectations shift. Major banking and payment stocks tumbled on the back of 10% interest rate considerations, signaling broader market concerns.

The selloff hit Capital One ($COF) the hardest, dropping 7%, while Affirm ($AFRM) fell 5%. Payment processors also felt the pressure: American Express ($AXP), MasterCard ($MA), and Visa ($V) each retreated 4-3%. Traditional giants like JP Morgan ($JPM) and Wells Fargo ($WFC) dipped 2%, with Bank of America ($BAC), Citigroup ($C), and US Bancorp ($USB) hovering around 3% losses.

This market reaction reflects investor concerns about how higher rates impact lending margins and consumer credit demand. For those tracking macro trends and asset correlations, this kind of volatility across traditional finance often signals shifting capital flows and risk sentiment in broader markets.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
7
Repost
Share

Comment

0/400

OnchainSniper

· 01-15 12:36

Is the 10% interest rate really coming? The decline in financial stocks is outrageous, with COF dropping by 7% directly. These payment companies can't hold up either...

View OriginalReply0

YieldHunter

· 01-15 10:51

ngl if you look at the data, trad finance bleeding out like this is just correlation noise. the real play is watching where those liquidity flows actually go—if degens rotate into yield farms instead, that's the signal nobody's talking about rn.

Reply0

New_Ser_Ngmi

· 01-12 20:15

Whenever interest rates go up, they start harvesting profits. Traditional finance methods really need to change.

View OriginalReply0

SoliditySurvivor

· 01-12 20:13

Bank stocks crashed again. I really don't understand—do these institutional investors only look at interest rates... --- Wait, COF down 7%? Fintech is about to suffer. --- It's hilarious—once the rate hike was announced, everyone was scared out of their wits. The market is just too fragile. --- Lending margins have been squeezed to this extent. Basically, money is getting more expensive. Retail investors should wait and see before bottom fishing. --- JPM only fell 2%, that's a bit strange? Is its resilience just stronger than others? --- Payment chain completely collapsed. This time, it's really a shakeout. --- Those who are betting on interest rates have made a killing. Contrarian strategies are the way to go. --- Once credit demand slows down, these players won't survive. It's time to see who can make it to the next cycle.

View OriginalReply0

MergeConflict

· 01-12 20:13

Whenever interest rates rise, everything collapses across the board. Traditional finance really can't hold up... This is probably the right time to benchmark.

View OriginalReply0

CompoundPersonality