Amex Spending Rises 9% Over Holiday, Fuels Retail Sector Optimism

American Express CEO Steve Squeri said consumer spending around the Thanksgiving holiday in the United States climbed 9% compared to the previous year. This increase, which includes the period from the week before Thanksgiving through Cyber Monday, highlights continued strength in the retail sector as shoppers prepare for the holiday season according to data. The spending trend is expected to support Amex's performance as the company heads into the final weeks of the fourth quarter.

The CEO noted that premium-card spending growth in the last three months of the year is likely to mirror the third quarter, when spending rose by 8.7% year-over-year to $421 billion according to reports. This performance reflects a resilient consumer base, particularly for high-end credit card users, who have shown a strong appetite for discretionary purchases.

Amex recently revised its Platinum credit card, raising the annual fee to $895 while enhancing benefits at popular retailers like Lululemon according to a company announcement.

The changes aim to cater to affluent consumers while maintaining the card's value proposition, which has historically been a strong driver of spending.

How Markets Reacted

The positive spending data came as Amex also reached a settlement with consumers over its antisteering rules, following a jury verdict that ordered the company to pay $12 million to one class of affected users according to legal filings. The resolution of the legal issue could allow Amex to refocus its efforts on growth and customer retention, particularly as it enters the critical holiday spending period.

Investors reacted cautiously to the news, with the broader market showing signs of mixed sentiment. While Amex's spending figures were encouraging, concerns over legal risks and regulatory challenges remained a factor for some observers. The company's ability to maintain strong spending momentum while addressing ongoing legal pressures will be closely watched.

Risks to the Outlook

Despite the positive consumer spending trends, Amex faces potential headwinds, including ongoing scrutiny over its business practices and the broader economic environment. The company has spent months defending its antisteering rules, which critics argue limit consumer choice and increase fees for non-Amex cardholders according to critics. The settlement, though it resolves one legal issue, does not fully eliminate the reputational and financial risks associated with such challenges.

Moreover, the fourth quarter is typically a high-stakes period for Amex, as consumer spending can be volatile due to shifting economic conditions and holiday budget constraints. Any slowdown in spending could impact the company's ability to meet or exceed expectations for the year.

What This Means for Investors

For investors, the 9% spending increase offers a promising indicator of consumer confidence, particularly in the premium credit card segment. Amex's focus on high-net-worth customers and its ability to adapt its product offerings—like the revised Platinum card—positions the company to benefit from continued demand for luxury and premium services. However, investors will also be looking for signs that Amex can sustain its performance through the fourth quarter and into 2026. The company's recent legal settlements and ongoing antitrust challenges add a layer of uncertainty to its long-term growth prospects. Squeri's comments at the Goldman Sachs conference suggest a strategic emphasis on maintaining and expanding the premium card segment amid evolving market dynamics.

The broader financial markets, meanwhile, have shown a cautious approach in recent weeks, with outflows from U.S. equities and mixed sentiment among investors. This environment means that Amex's performance will be closely scrutinized not just for its own success but also as a barometer of consumer spending trends more broadly.