American Express (AXP) shares tumbled 5.26% in pre-market trading on Friday, as investors reacted to China's announcement of additional tariffs on US goods in the escalating trade war. The move has stoked fears of a potential slowdown in consumer spending, which could directly impact credit card companies.
The sell-off in American Express stock comes as part of a broader decline among US card firms. Visa and Mastercard also saw their shares fall in pre-market trading, down 2.6% and 2.7% respectively. This latest drop follows a significant 10% decline for American Express on Thursday, highlighting the growing concerns in the financial services sector about the economic impact of the US-China trade dispute.
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. As consumer confidence potentially takes a hit from the trade war, credit card companies face the risk of weakened spending and could see their revenues impacted in the coming months.
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