The prospect of rising US interest rates is usually beneficial for US financial companies. Why is this? It is because higher interest rates mean that banks can charge more for their loans. The American Express Company is a multinational financial services corporation headquartered at 200 Vesey Street in the Battery Park City neighbourhood of Lower Manhattan in New York City, so if the Fed does signal an increase in interest rates then it could be due to gain in share price.
Over the last 14 years, American Express has risen 71.43% of the time between August 11 and September 19 with an average return of +1.87%. The largest gain was in 2011 with an 8.14% gain. The largest loss was in 2015 where American Express registered a -5.66% loss.
Major Trade Risks: Any weak US economic data could cause the Fed to delay any tapering announcement and mean rates stay lower for longer which would make loan charges less profitable.