Stocks fell Monday after the Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell, an apparent escalation by President Donald Trump in his attempt to pressure the central bank.
The Dow Jones Industrials docked 215.42 points to 49,288.65.
The S&P 500 let go of 7.25 points to 6,959.03
The NASDAQ dropped 17.85 points to 23,653.49.
Trump’s call to cap credit card rates for one year at 10% was also causing some market indigestion to start the week. Critics fear Trump’s plan to aid affordability would backfire and restrict lending, hurting consumers — along with bank profitability.
Bank stocks led the losses in early trading with Citigroup down 3%. JPMorgan and Bank of America were off by more than 1%. Capital One shares slid 6%.
Powell confirmed in an unusual direct video statement Sunday evening that federal prosecutors have opened a criminal investigation related to his Senate Banking Committee testimony on the renovation of Fed office buildings.
Powell said the investigation was another attempt by Trump to influence the central bank’s monetary policy and he would not bow to the pressure. His term as chair is up in May.
Walmart’s rally due to its upcoming inclusion in the NASDAQ index and Palantir’s surge on its stock upgrade also helped stem some of the losses during Monday’s session.
Prices for the 10-year Treasury dipped slightly, raising yields to 4.19%, from Friday’s 4.17%. Treasury prices and yields move in opposite directions.
Oil prices folded 41 cents to $58.71 U.S. a barrel.
Gold prices skyrocketed $111.20 to $4,612.10.
