Why Credit Card Stocks Jumped Today
Shares of Mastercard (NYSE: MA), Visa (NYSE: V), Discover Financial (NYSE: DFS), and Capital One (NYSE: COF) all rose more than 5% on Tuesday, as hopes for tax cuts fueled investor optimism.
The Dow Jones Industrial Average (DJINDICES: ^DJI) gained more than 1,100 points after news broke that President Trump pitched a 0% payroll tax rate to Republican lawmakers, which could potentially go into effect for the rest of 2020.
A tax cut of that magnitude would be likely to spur consumer spending, helping to offset the expected fallout from the COVID-19 coronavirus epidemic. Much of that spending would probably take place on debit and credit cards, such as those from Visa, Mastercard, Discover, and Capital One.
Source Fool.com
