American Express Shares Plunge 1.34% as Market Uncertainty and Fed Policy Shifts Weigh on Growth Stocks

American Express (AXP) fell 1.34% on Thursday, with the stock hitting its lowest level since September 2025. The decline marked an intraday drop of 1.64%, signaling a sharp reversal in investor sentiment following a year of strong performance.

The selloff comes amid broader market uncertainty and a reassessment of growth stock valuations. Despite CFRA analysts labeling AXP a top growth stock in 2025, citing 9% year-over-year revenue growth in Q2 and a “defensive growth stock” profile, recent volatility highlights profit-taking after a period of gains. The company’s focus on high-net-worth clients and diversified revenue streams—spanning credit card fees, travel services, and digital payments—remains intact, but near-term macroeconomic risks have tempered optimism.

Analysts had previously highlighted AXP’s resilience amid elevated interest rates, noting its ability to attract high-income customers less sensitive to spending cuts. However, shifting expectations around the Federal Reserve’s policy timeline have weighed on momentum. While the Fed’s dovish stance in late 2025 initially boosted investor confidence, concerns over slower-than-anticipated rate cuts have created headwinds for growth stocks reliant on low-rate environments. This dynamic, coupled with broader market corrections, has led to a pullback in AXP’s valuation.

Despite the decline, AXP’s long-term fundamentals remain robust. Strategic investments in digital transformation, contactless payments, and global networks position the company to capitalize on evolving consumer preferences. CFRA’s $390 price target, implying 17.9% upside, underscores confidence in AXP’s ability to maintain profitability through a mix of high-margin services and brand strength. Yet, the recent volatility underscores the market’s sensitivity to macroeconomic shifts, even for companies with strong structural advantages.