Shares of American Express Co. (AXP) retreated sharply in after-hours trading Thursday, dropping approximately 3.2% to $342.88. The decline extended the stock's losses over two sessions and occurred on trading volume that exceeded its 50-day average.
Market Context and Peer Performance
The broader market sold off ahead of Friday's closely watched Consumer Price Index report. The Dow Jones Industrial Average fell 669 points, while the S&P 500 and Nasdaq Composite declined 1.57% and 2.03%, respectively. American Express underperformed other major financial stocks during the session; JPMorgan Chase fell 2.63%, Bank of America lost 2.47%, and Visa declined 1.54%.
Company Developments
AmEx executives highlighted stable spending trends at a recent UBS financial services conference, with the chief financial officer noting global spending growth tracking between 7% and 8%. Separately, the company disclosed a $3.5 billion debt offering this week, including notes maturing in 2029 and 2032 with fixed-to-floating rate structures.
Analyst sentiment showed some adjustment, with Evercore ISI reducing its price target on the stock from $400 to $393 while maintaining an In Line rating. The company also announced an expanded partnership with the NBA that now includes the WNBA and USA Basketball.
Investor Focus on Inflation
Traders are positioning for Friday's inflation data, which could influence interest rate expectations and pressure consumer-finance stocks if price growth proves stronger than anticipated. The market reaction reflects investor scrutiny of card issuers for real-time signals on consumer health and credit conditions.
