US Equity Indexes Mixed, Gold Scales New Peak as Powell Labels DoJ Probe 'Pretext' to Influence Policy

01:56 PM EST, 01/12/2026 (MT Newswires) -- US equity indexes traded mixed while precious metals broke records in midday trading on Monday after Federal Reserve Chair Jerome Powell signaled that displeasure with monetary policy decisions is driving a Department of Justice probe into the central bank.

The Nasdaq Composite rose 0.4% to 23,767.3, and the S&P 500 climbed 0.2% to 6,976.1. The Dow Jones Industrial Average, however, was steady at 49,520.5, clawing back declines from earlier in the session. All three indexes traded sharply lower in premarket.

Financials and healthcare led the decliners, while consumer staples were among the top gainers.

Powell said late Sunday the Justice Department had subpoenaed Fed records regarding a $2.5 billion upgrade of the central bank's headquarters and his related testimony before Congress. The Fed chief described the Trump Administration's actions as a "pretext" to influence the central bank's policies.

"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," according to Powell.

Chairman Powell is saying the investigation is "solely because of President Trump's displeasure with the Committee's policy decisions," a Stifel research note said on Monday.

Trump, however, denied any involvement in the investigation during a Sunday night interview with NBC News. "I don't know anything about it, but he's certainly not very good at the Fed, and he's not very good at building buildings," according to Trump.

"I will oppose the confirmation of any nominee for the Fed - including the upcoming Fed Chair vacancy -until this legal matter is fully resolved," Senator Thom Tillis (R-NC), a member of the Senate Banking Committee, said in a Sunday statement. Powell's term as Fed Chair is due to end in May.

Silver futures soared 7.5% to $85.29 per troy ounce, and gold futures surged 2.6% to $4,617.10. Both gold and silver hit fresh records earlier in the session.

The ICE Dollar Index declined 0.3% to 98.88.

In geopolitical news that's also driving risk-off sentiment, Iran said it is "prepared for war" but ready to negotiate with the US based on "mutual respect and interests," CNN reported Monday. This comes as Trump said Tehran called to negotiate as his administration weighs possible military intervention during widespread anti-government protests, according to the news report.

In company news, shares of major banks and credit card companies fell on Monday after Trump said on Truth Social late Friday he is calling for a one-year cap on credit card interest rates of 10%, effective Jan. 20.

Capital One Financial (COF) shares slumped 6.4%, the second-worst performer on the S&P 500. American Express (AXP) was down 4%, among the worst performers in the S&P 500 and the Dow. JPMorgan Chase (JPM) and Visa (V) are down 2.1% and 1.6%, respectively, among the steepest decliners on the Dow.

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