American Express just hit a new high at $304.56 per share and as today's trading session is still ongoing, the price can develop to even higher or lower than that.

Factors that contribute to this surge may include the recent report from the Federal Reserve Bank of New York saying that Americans now have a record $1.17 trillion in outstanding credit card debt. The number is 8.1%increase year-over-year. And credit card balances rose by $24 billion in the third quarter of 2024 alone.

• List of 52-Week Lows

• List of 3-Year Lows

• List of 5-Year Lows

The credit card market is now seeing a noticeable growth in credit card spending both in the U.S. and globally. In the U.S. alone as of July 2024, the consumer spending on credit cards was 21% higher year-over-year.Globally, the credit card transactions are projected to rise 6.2% of annual growth.

Payments.com data revealed that people tend to use credit cards more for nonessential items such as dining out, shopping for clothes, entertainment, and subscription services. For the Q3 2024, Deloitte saw a notable increase in discretionary spending with categories like restaurants (+5.5%), going out (+3.4%), and holidays and hotels (+3.2%) seeing growth.

It is somewhat confusing that people spend more on nonessential items during inflationary periods but treats and rewards are indulgence to cope with the stress and the exchange value with money feels worth it.

You can deep dive to American Express' performance with charts and guru insights today!

This article first appeared on GuruFocus.