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Stock futures 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.
Futures for the Dow Jones Industrials dumped 375 points, or 0.8%, to 49,351.
Futures for the S&P 500 index fell 44.75
points, or 0.6%, at 6,960.25.
Futures for the NASDAQ lost 223.50 points, or 0.9%, to 25,714.75.
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 4% in the premarket. JPMorgan and Bank of America were off by more than 2%. Capital One shares plunged 11% in early trading.
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.
In Hong Kong, the Hang Seng gained 1.4%. Markets in Japan were closed for holiday Monday.
Oil prices ditched 55 cents to $58.56 U.S. a barrel.
Gold prices went skyward $92.10 at $4,593 U.S. per ounce.
