Stock market today: Live updates

Stock futures fell 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 on the Dow Jones Industrial Average dipped 199 points. S&P 500 futures shed 0.5% and Nasdaq-100 futures lost 0.7% as investors took off some risk on this new, more tense stage of the standoff between Trump and the Fed.

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.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead, monetary policy will be directed by political pressure or intimidation,” said Powell in the statement.

The Cboe Volatility Index, Wall Street’s fear gauge, ticked higher in early trading, reflecting that traders added to protection in the options market as news of the Powell probe came out.

“The market has seen this before and doesn’t like it. It’s not about Powell at this point, it’s about the independence of the Fed,” said Jay Woods, chief market strategist for Freedom Capital Markets. “So when news like this hits, the knee jerk reaction is to sell off.”

The stock market in 2025 largely ignored Trump’s attempts to pressure the Fed as the central bank went on anyway to cut rates three times as inflation stabilized.

But the Fed is largely expected to hold off on further cuts when it next meets later this month as it waits to see how the inflation picture and economy unfolds in the new year. Trump has made clear he would like to see the Fed continue to bring rates lower.

Gold futures, which are seen as a hedge against diminishing Fed independence, jumped 2% in early trading. Investors fear a political Fed would be hesitant to snuff out resurgent inflation.

“This is unambiguously risk off. We expect the dollar, bonds and stocks to all fall in Monday trading in a sell-America trade similar to that in April last year at the peak of the tariff shock and earlier threat to Powell’s position as Fed chair, with global investors applying a higher risk premium to U.S. assets,” said Krishna Guha, head of global policy and central bank strategy at Evercore ISI.

“Gold and other safe havens should rally,” added Guha.

The fight over central bank independence is coming as the U.S. stock market trades at record highs. The S&P 500 and the 30-stock Dow both finished Friday’s session at new peaks, capping a winning week for the major benchmarks. The S&P 500 rose more than 1% on the week, while the Dow and the Nasdaq Composite jumped 2.3% and 1.9%, respectively.

Trump’s call to cap credit card rates for one year at 10% was likely 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.

Traders are preparing for the kickoff of earnings season, with major Wall Street banks set to report results in the days ahead. JPMorgan Chase, Bank of America, Morgan Stanley and Goldman Sachs are all scheduled to release quarterly numbers, offering investors fresh insight into the health of consumer spending, dealmaking activity and trading revenues.