The morning coffee barely had time to kick in before the red started bleeding across the screens today, January 14, 2026. If you’ve been riding the high of the New Year rally, this morning probably felt like a cold shower. Markets are finicky. One day we’re talking about S&P 500 records, and the next, everyone is scrambling to figure out why the "Trump Trade" is suddenly hurting the very banks it was supposed to help.
Honestly, the mood on Wall Street shifted fast. We went from "everything is great" to a cautious crawl in about 48 hours. The culprit? A mix of political curveballs, disappointing guidance from big players like Delta, and some serious nerves regarding credit card interest rates.
What Stocks Are Down Today and Why
The damage is pretty localized but deep. Financials are taking the brunt of the beating. It’s kinda ironic because banks usually love the start of the year, but JPMorgan Chase and its peers are staring at a sea of red.
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JPMorgan Chase (JPM) and Wells Fargo (WFC) are the big ones everyone is watching. Despite some decent headline numbers in their quarterly reports, the market is fixated on the proposed 10% cap on credit card interest rates. President Trump’s recent proposal has sent a shiver through the sector. If you can’t charge more than 10%, your profit margins on consumer debt basically evaporate overnight.
Then there’s Delta Air Lines (DAL). They dropped about 5% because their 2026 profit forecast didn't live up to the hype. It’s a classic "beat and raise" failure—they beat the past, but the future looks a little foggy to investors.
- Root (ROOT): Down about 5.6% after Wells Fargo analysts slashed the price target from $96 to $75.
- Synchrony Financial (SYF): Fell over 8%. They are heavily exposed to credit card lending, so the 10% cap news hit them like a freight train.
- Capital One (COF): Down about 6.4% for the same reason.
- Vistry Group: Dropping 4.5% in the European session, dragging down the mood across the pond.
The Tech Sector's Slow Fade
It isn't just the banks. Even the darlings of 2025 are feeling the weight. Palantir (PLTR) is down roughly 14% from its November highs, even though Citigroup just tried to save the day with a price target upgrade to $235. It’s the most expensive stock in the S&P 500 right now. When you’re priced for perfection, even a tiny bit of "okay" news feels like a disaster.
Software giants like Salesforce (CRM) and Adobe (ADBE) are also seeing significant pullbacks, with CRM sliding over 7%. It feels like a rotation. Money is moving out of the "expensive" names and hiding in energy or defensives while the dust settles on these new policy proposals.
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The "Trump Cap" and the Credit Crunch
You’ve gotta look at the 10% credit card rate cap to understand the "why" behind the "what." This isn't just a small tweak. For companies like Visa and Mastercard, which also saw their shares dip, this changes the math of consumer spending.
Tim Ghriskey over at Ingalls & Snyder mentioned that the reality of this proposal is finally "sinking in." It’s a massive headwind. If consumers have less access to credit because banks tighten lending to protect their margins, the whole retail sector could be next. We're already seeing Abercrombie & Fitch and Urban Outfitters take hits—down 17% and 12% respectively—because their holiday forecasts were just "meh."
Inflation and the Fed Factor
We also just got the December CPI data. It came in right where people expected, which usually is good news. But in 2026, "expected" isn't always enough to keep a rally going. The market is exhausted. We've had three years of double-digit gains, and history tells us that bull markets usually start to get "tired" around the three-year mark.
Navigating the Volatility
So, what do you actually do when you see what stocks are down? Panicking is the easy route, but it's rarely the profitable one.
- Watch the Combined Ratio: If you’re looking at insurance stocks like Root, keep an eye on that 102% combined ratio. Anything over 100 means they’re losing money on underwriting. That’s a fundamental red flag regardless of what an analyst says.
- Reassess Your Financial Exposure: If your portfolio is 40% banks, you’re currently in the splash zone of the 10% rate cap debate. It might be time to look at Energy or "Defensives" which are actually outperforming today.
- Don't Chase the "Cheap" Tech: Just because Palantir is 14% off its high doesn't make it a "bargain" yet. It’s still trading at a massive premium. Wait for the support levels to hold before jumping back in.
The market is currently in a "show me" phase. It’s no longer enough to just mention "AI" or "Growth" to get a 10% bump. Investors want to see how these companies will navigate a shifting political landscape and a potential credit squeeze.
Next Steps for Your Portfolio
Audit your bank holdings immediately to see how much of their revenue comes from high-interest credit products. If the 10% cap becomes reality on January 20, the current dip is just the beginning for those specific tickers. Move your focus toward companies with strong free cash flow and low debt-to-equity ratios to weather the January turbulence.