US Stock Market Today: Wall Street Wobbles as Probe Into Fed Chair Powell Raises Policy Concerns

US stocks traded mixed as markets reacted to a criminal probe involving Fed Chair Jerome Powell, reviving concerns over Federal Reserve independence and policy stability. The Dow Jones Industrial Average slipped, while the S&P 500 and NASDAQ hovered near flat levels after recent record closes.

US Stocks Ease as Powell Probe Sparks Fed Independence Concerns

US equities opened lower and then trimmed losses as trading progressed. The Dow fell about 0.2% in late morning action, while the S&P 500 and NASDAQ held close to unchanged. The pullback followed a stretch that pushed major benchmarks to new highs.

The mood shifted after Federal Reserve Chair Jerome Powell said the Justice Department served the central bank with grand jury subpoenas tied to his congressional testimony on headquarters renovations. Powell said the threat of criminal charges followed the Fed’s rate decisions rather than any valid concern about the project. The Federal Reserve posted Powell’s statement on Sunday.

Markets also tracked broader ‘sell America’ positioning, with investors watching the dollar and safe-haven assets alongside equities. Some strategists said uncertainty around policy credibility can influence both stock and bond risk premiums, even when economic data remains the main driver of rate expectations.

Financial Stocks Slide after Trump Targets Credit-Card Rates

US financial shares led early declines after President Donald Trump warned credit card issuers that they would violate the law if they did not cap interest rates at 10% for a year. The comments weighed on major lenders that rely on consumer-credit revenue.

Capital One share dropped sharply in early trade, and other large banks also fell as investors priced in the potential impact on profitability. The move arrived just as Wall Street prepared for a new earnings season, with major US banks scheduled to report results in the days ahead.

Investors also watched how the rate-cap message could affect credit availability and loan growth. Bank executives and analysts often link card pricing to funding costs, charge-offs, and underwriting standards, so traders monitored whether the White House pressure would expand beyond public remarks.

Inflation Data and Global Risks Stay in Focus for Wall Street

Attention now turns to US inflation updates, with the December Consumer Price Index scheduled for Tuesday, January 13, at 8:30 a.m. ET. The report matters because it can reshape expectations for the Fed’s next rate move and influence Treasury yields and equity valuations.

Recent pricing in rate markets has leaned toward no immediate cut, as investors weigh cooling labor conditions against inflation risks. Goldman Sachs’ chief economist said political threats against the Fed could intensify independence worries, even as the bank’s baseline outlook keeps policy decisions tied to incoming data.

Outside the US macro calendar, traders monitored geopolitical headlines tied to Iran, which can affect oil pricing and broader risk sentiment. Oil prices eased on the day as markets weighed supply risks against demand signals and the near-term trajectory for global growth.

By the end of the morning session, US stocks today remained close to flat overall, but sector moves showed rising sensitivity to Washington-driven policy uncertainty. Investors now look to inflation data, bank earnings, and further developments around the Fed subpoenas for clearer direction. 

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