Trump's Pressure on Fed Leads to Broad Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
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Should l Buy ?
Source: NASDAQ.COM
- Market Pressure Intensifies: The S&P 500 Index fell by 0.23%, the Dow Jones Industrial Average by 0.58%, and the Nasdaq 100 by 0.27% due to increased concerns over Fed independence stemming from the Trump administration's attacks, indicating a bearish sentiment among investors.
- Gold Prices Surge: Following Fed Chair Powell's comments about facing criminal indictment, gold and silver prices reached all-time highs, reflecting a strong demand for safe-haven assets and potentially leading to capital outflows from the stock market.
- Credit Card Companies Hit: Trump's statement that credit card lenders would violate the law if they do not cap interest rates at 10% caused Synchrony Financial's stock to drop over 7%, highlighting the direct impact of policy risks on financial stocks.
- Economic Data Focus: The market is set to closely monitor upcoming economic data, including December CPI and PPI, which are expected to influence the Fed's monetary policy direction and further exacerbate market uncertainties.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
