American Express Stock Dives Amidst Oil Price Surge and Tariff Escalation
American Express Co (NYSE:AXP) stock fell on September 8 as macroeconomic forces weighed heavily on the market. The company's shares dropped 1.11% to $326.16, mirroring the Dow Jones Industrial Average's 1.18% decline.
The surge in oil prices, with Brent crude nearing $99 a barrel, and escalating tariffs due to the trade war between Washington and Ottawa contributed to the market downturn. These developments reintroduce inflation risk, which the Federal Reserve attempted to suppress earlier in the year.
American Express's premium card strategy appears intact, as evidenced by its Q2 2026 results. Revenue grew 10% year over year, with card member spending increasing 9% on a foreign-exchange-adjusted basis. This growth is attributed to travel and entertainment, which rose 10%, and goods and services, up 9%.
The company's affluent base has historically been insulated from inflationary episodes. However, a sustained commodity run combined with tariff-driven goods price increases could test this insulation. The company's next earnings report on October 16 will provide insight into whether the macro deterioration visible on September 8 has affected spending data.