Card companies, fintech firms rise as Fed chair signals possible Sept rate cut

Chime Financial

22/08/2025 15:30

** Shares of card companies and payment firms rise after Federal Reserve chair Jerome Powell points to a possible rate cut in the coming month, but stopped short of committing

** Visa V.N rises 2%, Mastercard MA.N rises 1.3%, American Express AXP.N gains 2.8% and Capital One Financial up 3.3%

** PayPalPYPL.O up 2.4% and Affirm AFRM.O up 6.2% while Robinhood HOOD.O rises 2.7%

** Chime Financial CHYM.O rises 3.1% and LendingClub LC.N up 4%

** A decline in the benchmark interest rates helps card companies as lower interest boosts loan demand and facilitates spending on cards and through payment firms and fintechs

** The Fed cut interest rates last year, but have kept them unchanged in 2025 on the back of geopolitical pressures, trade policy changes and inflationary pressures

 (Reporting by Pritam Biswas in Bengaluru)

 ((Pritam.Biswas@thomsonreuters.com))