Why the stock market keeps shrugging as Trump sows more political chaos

Core Viewpoint - Stock investors largely ignored the criminal investigation of Federal Reserve Chair Jerome Powell, indicating a tendency to overlook political risks in the market [1] Market Reaction - The Dow Jones Industrial Average initially fell nearly 500 points but recovered to end the day at all-time highs, alongside the S&P 500 and Russell 2000 [2] - This recovery defied conventional market wisdom that political turmoil typically leads to stock declines as traders hedge their bets [2] Economic Perspectives - Leading economists expressed support for Powell, suggesting that the investigation is a temporary issue rather than a significant threat to the Fed's independence [3] - Former Fed Chair Janet Yellen noted surprise at the market's lack of concern regarding the investigation, indicating a disconnect between political events and market reactions [4] Political Dynamics - Republican opposition to the investigation became evident, with Senator Thom Tillis stating intentions to block any Trump nominees to the central bank following the investigation's announcement [4] Asset Class Performance - While U.S. stocks performed unexpectedly well, other asset classes reacted differently, with the U.S. dollar declining and safe-haven metals like gold and silver reaching new highs [5] - U.S. stocks are underperforming compared to international counterparts this week [5] Volatility Indicators - The CBOE Volatility Index (VIX) increased but remained within its recent trading range, suggesting that investors are not overly concerned about the investigation [6] - Market participants are shifting focus to upcoming inflation data and corporate earnings reports as the Q4 earnings season approaches [6]