American Express Plunges 8% as Investor Sentiment Sours in Low-Volume Selloff
American Express (AXP) shares fell sharply on Friday, dropping nearly 8% in a single session. The decline came with unusually low trading volume, suggesting investor sentiment rather than heavy selling drove the drop in the stock market today.
The stock's slump extended a difficult year for AXP, which has lost 11.39% of its value since January. Despite this, technical indicators still signal a 'Buy' rating for the company.
Options market activity surged during the decline, with around 22,400 put contracts traded—five times the usual daily volume. The put-to-call ratio jumped to 2.6, showing traders were hedging against further losses rather than betting on a rebound in the Dow Jones.
At-the-money implied volatility rose by over six points, pointing to expectations of bigger price swings ahead. Interest in put options was concentrated on March and June 2026 expirations, particularly at the $280 strike, where roughly 4,700 contracts changed hands. This suggests traders anticipate prolonged volatility through mid-2026 in the stock market.
Friday's trading volume reached just 379,000 shares, far below the typical 3.1 million. The lack of heavy selling pressure reinforced the view that negative sentiment, not mass exits, pushed the stock lower in the stock market today.
American Express remains a major player, with a market capitalisation near $212 billion. The company holds a gross margin of 60.65% and currently offers shareholders a 1.06% dividend yield.
The sharp drop in AXP shares reflects growing caution among investors, despite the company's strong fundamentals. With options activity signalling expectations of continued volatility, market watchers will be closely monitoring the stock's performance in the coming months in the stock market.
