American Express (AXP) shares plunged 6.06% in pre-market trading on Friday, as investors reacted to China's announcement of additional tariffs on US goods, escalating tensions in the ongoing trade war between the two economic giants. The sharp decline reflects growing concerns about the potential impact on consumer spending and the broader financial services sector.

The sell-off in American Express stock comes as part of a wider market downturn, with other major credit card companies also experiencing significant losses. Visa and Mastercard saw their shares fall by 2.6% and 2.7% respectively in pre-market trading. This latest drop follows a substantial 10% decline for American Express on the previous day, underscoring the mounting worries in the financial services industry about the economic repercussions of the US-China trade dispute.

Investors are particularly concerned about the potential slowdown in consumer spending, which could directly impact credit card companies' revenues and profitability. As consumer confidence potentially takes a hit from the trade war uncertainties, credit card usage and overall transaction volumes may decrease, affecting American Express's bottom line.

Adding to the negative sentiment, HSBC cut its price target for American Express from $299 to $273, reflecting lowered expectations for the company's performance in light of the current economic uncertainties. This analyst downgrade further contributed to the stock's sharp decline in pre-market trading.

As the market continues to react to the escalating trade tensions and their potential impact on consumer behavior, American Express and other financial services companies may face ongoing volatility. Investors will be closely monitoring developments in the US-China trade negotiations and any signs of changes in consumer spending patterns in the coming weeks.