Stock market today: Dow, S&P 500, Nasdaq waver on threat to Fed as DOJ begins criminal probe of Powell

Market Overview - US stocks experienced a pullback from record highs, with the Dow Jones Industrial Average falling 0.2% and the S&P 500 and Nasdaq Composite remaining roughly flat [1] - Concerns over Federal Reserve independence arose after a criminal investigation was opened into Chair Jerome Powell [1][2] Federal Reserve and Political Pressure - Powell stated that the Justice Department has subpoenaed the Fed, which could lead to criminal charges regarding his testimony on building renovations, indicating political pressure from President Trump [2][3] - Powell emphasized that the Fed's interest rate decisions are based on public service rather than presidential preferences, labeling the concerns in the subpoenas as "pretexts" [3] Market Reactions - The developments have heightened fears of political interference in monetary policy, contributing to a rise in gold prices to record levels and a decline in the dollar to its lowest in three weeks [4] - Financial services stocks, particularly credit card issuers, faced declines after Trump warned that lenders would violate the law if they did not cap interest rates at 10%, leading to a 7% drop in Capital One shares [5] Economic Indicators - Investors are preparing for upcoming inflation updates, with the Consumer Price Index (CPI) report expected, while markets anticipate no rate cut from the Fed following a December jobs report indicating a cooling labor market [6]