U.S. stock futures slid further on Monday, weighed down by concerns over Federal Reserve independence after Chair Jerome Powell revealed that the Trump administration threatened him with a criminal indictment.
As of 4:32 P.M. (GMT+7), Dow Jones Industrial Average futures dropped by 0.76%, or 378.50 points, to 49,125.60 points, while S&P 500 futures slipped by 0.75%, or 52.40 points, to 6,913.90 points. Nasdaq 100 futures also declined by 1.01%%, or 261.20 points, to 25,505.10 points after Wall Street closed at record highs.
Investor sentiment shifted sharply on Sunday after Powell issued a statement disclosing that the Department of Justice had served the central bank with a grand jury subpoena. He cast the development as a direct response to the Fed’s policy decisions, noting that interest rates had been set “to serve the public” rather than adhere to “the preferences of the President.”
The escalating standoff between President Donald Trump and the Fed chair comes as markets anticipate the release of the latest consumer inflation figures on Tuesday. The data follows Friday’s December jobs report, which indicated a continued cooling in the labor market but stopped short of suggesting an abrupt downturn.
Market data continues to signal expectations for the central bank to keep rates steady, with CME FedWatch data showing a 95% likelihood that the Federal Reserve will remain on hold.
Meanwhile, investors continue to monitor global tensions. President Trump is reportedly considering action against Iran and increasing pressure on Cuba regarding Venezuelan oil shipments. Trump also stirred controversy last week by reiterating suggestions that the U.S. might seek “control” of Greenland.
With turmoil mounting, attention now shifts to key upcoming events: major U.S. bank earnings and core inflation data. JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley are all set to report results in the coming days.
