Stock market today: Dow, S&P 500, Nasdaq futures slide as Trump's DOJ probes Powell in threat to Fed
US stock futures sank early on Monday after Federal Reserve Chair Jerome Powell said the Trump administration has threatened him with a criminal indictment, reigniting concerns over the central bank’s independence.
Dow Jones Industrial Average futures (YM=F) fell 0.5%, while those on the S&P 500 (ES=F) moved down 0.5%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the way lower, down 0.8% on the heels of record closing highs for Wall Street stocks.
Investors were rattled late Sunday evening after Federal Reserve chair Jerome Powell released a statement revealing that the Department of Justice had subpoenaed the US central bank.
In a rare video, Powell said “the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June.”
Powell suggested the move was a direct attack on the Fed for the setting of interest rates that “serve the public” rather than “following the preferences of the President.”
The significant escalation in Trump’s feud with the Fed chair comes as markets are bracing for the latest consumer inflation report, due Tuesday. The release comes on the heels of Friday’s December jobs report, which showed continued cooling in the labor market without signaling a sharp economic slowdown.
Taken together, the data has reinforced expectations that the Federal Reserve will remain on hold for now, with CME FedWatch offering a 95% probability of rates staying the same.
Beyond the economic calendar, geopolitical developments remain a wildcard. Trump is reportedly weighing potential action involving Iran, while also escalating pressure on Cuba over Venezuelan oil shipments. Late last week, Trump also renewed controversial comments about Greenland, saying the US could pursue control of the Danish territory “whether they like it or not.”
Investors are now turning their attention to the first major catalysts of 2026: earnings season and key inflation data. Several of Wall Street’s biggest banks are set to report in the coming days, including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), Goldman Sachs (GS), and Morgan Stanley (MS).
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