Risk-Off Returns, US Indexes Red
Wall Street opened the week in a risk-off mood after political tensions surrounding the Federal Reserve sparked renewed concerns about the central bank's independence. Investors appeared to be reducing exposure to US assets (stocks, bonds, the dollar) and turning to precious metals as a safe haven.
The Dow Jones Industrial Average fell 0.6% to 49,207.
The S&P 500 fell 0.4% to 6,938.
The Nasdaq 100 fell 0.6% to 25,612.
Market pressure intensified in financial stocks after Trump called for a one-year cap on credit card interest rates at 10%, which immediately hit sentiment in the banking and lending sectors.
The main trigger remained Jerome Powell's statement: the Fed received a grand jury subpoena from the Department of Justice and faces the threat of criminal proceedings related to his testimony regarding the renovation of the Fed building—an issue Powell cited as a form of pressure for the central bank to lower interest rates.
Source: Newmaker.id