US stock markets faced a wave of volatility on Monday, January 12, 2026, as investors grappled with a rare direct legal confrontation between the White House and the Federal Reserve. The Dow Jones Industrial Average fell more than 260 points, or 0.53%, while the S&P 500 slipped 0.07% to 6,961.16. Although the Nasdaq Composite managed a slight gain of 0.10% by late morning, the broader sentiment remained cautious. The primary catalyst for the decline is a Department of Justice (DOJ) criminal investigation into Federal Reserve Chair Jerome Powell regarding his past testimony on a $2.5 billion renovation of the Fed’s Washington headquarters.
This escalation has raised significant alarms regarding the independence of the U.S. central bank. Powell issued a sharp public response, labeling the probe a “pretext” for political pressure. The standoff comes as President Trump continues to urge for aggressive interest rate cuts, leading many to fear that monetary policy is becoming a tool of political willpower rather than economic data.
In the technology sector, two of the world’s largest companies made headlines for very different reasons. Apple (AAPL) is currently staring down its longest losing streak since 1991. Despite holding a dominant 20% global smartphone market share in 2025, the stock has struggled to find its footing amid concerns over AI integration and rising component costs. If the decline continues through today’s closing bell, it will mark the ninth consecutive day of losses.
Markets reacted by shifting toward safe-haven assets; gold prices surged to record highs, while the U.S. dollar hit a three-week low. As the week begins, Wall Street is also on edge for the December Consumer Price Index (CPI) report due Tuesday, which will further dictate the Fed’s next moves.
Why Dow, S&P 500 and Nasdaq down today?
The Dow Jones Industrial Average dropped 264.07 points, or 0.53%, to 49,240 in early trading. The S&P 500 slipped 5.12 points, or 0.07%, to 6,961.16. Meanwhile, the Nasdaq Composite hovered near record territory, edging up 23.19 points, or 0.10%, to 23,694.54 as heavy technology trading offset broader weakness.
Investor sentiment deteriorated rapidly after confirmation that federal prosecutors had issued subpoenas to the Federal Reserve as part of a criminal investigation linked to testimony by Jerome Powell. The inquiry centers on statements related to the cost and oversight of Federal Reserve building renovations.
In a rare and strongly worded public statement, Powell warned that the threat of criminal charges tied to policy actions undermines the central bank’s independence. He said the concerns cited in the subpoenas were “pretexts” and described the investigation as an escalation of political pressure to force interest-rate cuts.Markets reacted forcefully because Fed independence is viewed as essential for controlling inflation, managing employment, and maintaining global confidence in U.S. assets. Any perception that interest-rate decisions could be influenced by political or legal pressure increases uncertainty around future policy moves. That uncertainty often leads investors to pull back from equities, particularly after long rallies.
The episode also deepens an already tense standoff between the Fed and the White House. Donald Trump has repeatedly criticized the Fed for keeping rates elevated and has publicly pushed for aggressive cuts to support growth. Powell’s response signals that the conflict has moved into uncharted territory, adding another layer of risk for markets.
Financial stocks fall as Trump warns on credit card interest rates
Bank and financial services stocks led losses across the Dow and S&P 500. Selling intensified after President Trump warned that credit card lenders would be “in violation of the law” if they fail to cap interest rates at 10%. The comments immediately rattled investors, as credit card lending remains a major profit center for large U.S. banks.
Shares of Capital One fell about 6% in early trading, making it one of the worst performers in the financial sector. Citigroup and JPMorgan Chase also traded lower, dragging the Dow deeper into the red. The warning arrives just as major U.S. banks are preparing to report quarterly earnings, increasing uncertainty around revenue outlooks and regulatory risk.
The broader financial sector is already under pressure from slowing consumer spending growth and higher credit delinquencies. Any forced cap on interest rates could significantly compress margins, especially at a time when funding costs remain elevated.
Hot stocks show mixed picture as volatility rises
Despite the broader market pullback, trading activity remained intense in several individual stocks. Ondas Holdings saw heavy volume but traded lower, while Biodesix surged more than 50% on unusually strong buying interest. Intel slipped modestly as investors remained cautious ahead of earnings, even as chipmakers continue to benefit from AI-related demand.
Nvidia traded slightly higher, reflecting ongoing confidence in artificial intelligence spending, while Tesla rose about 1% on strong volume. Opendoor and SoFi Technologies both declined, highlighting continued pressure on rate-sensitive and consumer-facing companies. Plug Power and Outset Medical posted gains, showing selective risk-taking despite the broader uncertainty.
In mega-cap tech, Meta shares fell after announcing the appointment of former Trump advisor Dina Powell McCormick as president and vice chair. The company reiterated plans to spend about $71 billion in 2025 on capital expenditures, largely focused on AI infrastructure. Apple shares edged higher but remain on track for their longest losing streak since 1991, even as new data shows Apple leading global smartphone market share in 2025.
Inflation data, earnings, and geopolitics now in focus
The unsettled market tone comes ahead of key economic data. December’s Consumer Price Index report is due Tuesday and will be closely watched for signs of cooling inflation. After Friday’s jobs report showed slower labor-market growth without a sharp economic slowdown, markets are overwhelmingly betting the Fed will hold rates steady this month.
Safe-haven assets reflected rising caution. Gold prices climbed to fresh record highs, while the U.S. dollar slipped to its lowest level in three weeks. Investors also kept a close watch on Iran, where public unrest continues to escalate. President Trump said the U.S. is “looking” at possible military action, adding geopolitical risk, though oil prices retreated as traders weighed supply impacts.
With valuations stretched, political tensions rising, and critical data and earnings ahead, Wall Street is entering a fragile phase. Monday’s pullback underscores how quickly confidence can shift when institutional stability is called into question, even after historic market highs.
Today’s top stocks to watch: most active, biggest gainers and notable losers
U.S. trading activity was heavily concentrated in a mix of speculative names, big tech, and consumer-facing stocks, reflecting a volatile but selective market mood.
Ondas Holdings remained one of the most active stocks of the session, trading around $13.21, down 3.47%, with volume surging to 50 million shares. Despite the pullback, the stock continues to trade near the upper end of its 52-week range of $0.57 to $15.28, showing strong retail and momentum-driven interest.
Biodesix stood out as one of the day’s biggest gainers. Shares jumped 42.8% to about $7.80 on volume of 38 million, signaling aggressive buying interest. The stock remains volatile, with a wide 52-week range between $3.44 and $30.22, making it a favorite among short-term traders.
Mega-cap tech showed steadier moves. NVIDIA edged slightly higher to $184.91, up 0.02%, on nearly 29 million shares traded. The stock continues to consolidate below its 52-week high of $212.19, reflecting ongoing confidence in AI-related demand despite broader market uncertainty.
Intel slipped 1.05% to $45.07, with volume also near 29 million shares. The stock is trading close to its yearly high of $45.73, suggesting investors are cautious but still constructive ahead of future earnings and strategy updates.
In housing-related names, Opendoor Technologies fell 3.84% to $7.01 on 23 million shares traded. The stock remains well above its 52-week low of $0.51, but elevated rates and housing market uncertainty continue to weigh on sentiment.
Clean-energy plays showed renewed strength. Plug Power climbed 4.34% to $2.29, supported by 21 million shares in volume. The move keeps the stock within its broad $0.69 to $4.58 annual range, as traders speculate on policy support and funding stability.
Medical device maker Outset Medical rallied 18.86% to $5.42 on about 20 million shares, marking one of the stronger percentage gains of the day. Despite the surge, the stock remains far below its 52-week high of $21.98, underscoring its high-risk, high-reward profile.
Financial technology stock SoFi Technologies declined 3.59% to $26.41, with volume nearing 19 million shares. The move reflects broader pressure on rate-sensitive stocks amid uncertainty around interest rates and regulatory headlines.
Among large-cap consumer names, Tesla rose 1.08% to $449.84 on 18 million shares traded. The stock remains near the top of its 52-week range of $214.25 to $498.83, continuing to attract strong speculative and long-term interest.
Meanwhile, Sidus Space fell sharply, down 12.85% to $3.49, despite heavy volume of 17 million shares. The stock remains highly volatile, trading between $0.63 and $5.39 over the past year.
Precious metals surge as investors rush to safety
Gold prices jumped sharply, extending their rally as investors sought safe-haven assets amid rising market uncertainty. Gold climbed to $4,629.30, gaining $128.40, or 2.85%, in active trading. Volume reached about 186,000 contracts, pushing prices to the top of their 52-week range, which spans from $2,672.00 to $4,629.30. The move reflects strong demand as confidence in risk assets weakens.
Silver outperformed the broader metals complex with a powerful surge. Prices leapt 7.81%, or $6.20, to $85.54 on volume of roughly 100,000 contracts. Silver is now trading at the high end of its 52-week range of $27.52 to $85.54, driven by a mix of safe-haven buying and industrial demand expectations.
Platinum also posted solid gains, rising $54.60, or 2.38%, to $2,351.30. Trading activity stood near 19,000 contracts. While platinum remains below its 52-week high of $2,584.50, it has rebounded strongly from its yearly low of $878.30, signaling renewed investor interest in the metal.