Major US stock indices edged lower on Monday after the Donald Trump administration renewed attacks on the Federal Reserve, stoking fresh worries about the central bank’s autonomy.
Financial stocks declined following a proposed one-year cap on credit-card interest rates.
As of 10 a.m. Eastern Time, the S&P 500 edged down by 0.1%, the Dow Jones Industrial Average was down 0.4%, and the Nasdaq Composite was nearly flat.
At the open, the Dow Jones Industrial Average fell 4.4 points, or 0.01%, to 49499.67. The S&P 500 fell 22.2 points, or 0.32%, to 6944.12, while the Nasdaq Composite dropped 94.5 points, or 0.40%, to 23576.877.
In the bond market, the yield on the 10-year Treasury rose to 4.19% from 4.18% late on Friday.
The US dollar dipped against the euro and other currencies amid concerns that the Fed may have less independence in setting rates.
The administration of US President Donald Trump has escalated its pressure on the Federal Reserve, threatening Chair Jerome Powell with an indictment regarding a building renovation project. Powell has dismissed the move as a “pretext” intended to force the interest rate cuts Trump desires.
With Powell’s term concluding in May, the Trump administration is reportedly set to interview BlackRock’s Rick Rieder as a potential successor, as reported by Fox News.
Meanwhile, the Fed is anticipated to maintain current policy rates during its January 27-28 meeting following last year’s 75-basis-point reduction.
Key Stock Movers
Lenders and credit card companies fell after Trump called for a 1-year cap on credit card interest rates at 10% starting January 20.
Stocks of Citigroup tumbled 3% and JPMorgan Chase fell 1.2%.
American Express shed 4% and consumer finance firms such as Synchrony Financial, Bread Financial and Capital One slumped between 6% and 10%.
Walmart shares gained 1.8% as the firm will join the Nasdaq-100 index on January 20.
UnitedHealth Group stock dropped 2.2% after the Wall Street Journal reported that the insurer used aggressive tactics to collect diagnoses that can increase Medicare Advantage payouts.
Bullion Market
Gold prices crossed a mark of $4,600 per ounce on Monday and silver hit a fresh high on safe-haven demand after uncertainty deepened over a Trump administration’s criminal probe into Federal Reserve Chair Jerome Powell and escalating geopolitical tensions.
As of 09:30 a.m. ET (1430 GMT), spot gold was up 1.7% at $4,584.91 per ounce, after hitting a record high of $4,620 earlier in the session. US gold futures for February delivery jumped 2.1% to $4,596.70.
Spot silver hit an all-time high of $85.69, and was later up 5.1% at $84 per ounce. Spot platinum climbed 1.8% to $2,314.71 per ounce while palladium gained 1.9% to $1,850.82.
Crude Oil
Crude oil prices dropped on Monday after Iran said it had total control amid the biggest anti-government protests in years.
At 1402 GMT, Brent crude futures lost 28 cents, or 0.44%, to $63.06 a barrel. US West Texas Intermediate crude was at $58.78 a barrel, down 34 cents, or 0.58%.
Last week, both the benchmarks gained 3%.
Iran’s Foreign Minister Abbas Araqchi said on Monday the situation in the nation is “under total control”, after widespread demonstrations over the weekend.
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