Global stock markets failed to maintain their excellent momentum in trading on Wednesday as financial sector shares suffered a decline.
The fall was due to US President (US), Donald Trump's proposal to set a one-year cap on credit card interest rates at 10% for a period of one year, starting January 20.
The move is feared to directly affect financial companies' profit margins.
JPMorgan Chief Executive Officer (CEO), Jamie Dimon also warned that Trump's plan risks having a negative impact on consumers in the long term.
The announcement saw Visa shares fall 4.5%, Mastercard fall 3.8% and the financial sector decline 1.8%, leading the decline in the S&P 500.
JPMorgan shares fell 4.2% as investment banking fees declined, despite quarterly profit exceeding expectations.
Meanwhile, several other major banks scheduled to report quarterly results this week also traded lower, although analysts expect most banks to post stronger performance in the final quarter of 2025.
In terms of major index performance, the Dow Jones Industrial Average fell 0.80% to 398.21 points, the S&P 500 fell 0.19% to 13.53 points, while the technology-focused Nasdaq Composite fell 0.10% to 24.03 points.
Volume on US exchanges was $18.68 billion, compared to an average of $16.4 billion for the last 20 trading days.
