Gokhan Ergocun
13 January 2026•Update: 13 January 2026
ISTANBUL
US stocks ended the first trading day of the week higher despite concerns over a criminal investigation into the Federal Reserve and its potential implications for monetary policy independence.
The Dow added 0.17%, or 86.13 points, to close at 49,590.20.
The Nasdaq gained 0.26%, or 62.56 points, to end at 23,733.90, while the S&P 500 rose 0.16%, or 10.99 points, to finish at 6,977.27.
The Volatility Index (VIX), also known as the "fear index,” soared 4.35% to 15.12.
Stock markets, which started the day with declines amid concerns over the Fed's independence, ended the day on a positive note.
Fed Chairman Jerome Powell announced that the Justice Department had served the Fed with a grand jury subpoena on Friday.
Powell said he had received a threat of criminal indictment, adding that "this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.”
While the probe was launched over a $2.5 billion renovation project at the Fed’s headquarters, Powell said he believes the threat of criminal charges is mainly tied to the central bank’s monetary policy decisions, adding that he has carried out his duties free from political pressure.
Analysts said the move marked a clear escalation in Trump’s efforts to pressure the Fed to cut interest rates.
Former officials from past US economic administrations, including three former Fed chairmen, stressed the importance of the Fed’s independence for economic performance.
In a statement, they said the investigation was an unprecedented attempt, carried out through the Washington, DC, prosecutor’s office, to undermine that independence.
Reports by US media outlets have indicated that Trump is planning this week to interview Rick Rieder, an executive at asset management company BlackRock, to take over as the Fed's new chair.
In a post on his social media platform Truth Social, Trump said that if the Supreme Court rules against his tariffs, the US would have to pay "hundreds of billions of dollars" in compensation, a figure he said could rise to trillions of dollars once lost investments are included.
On the corporate side, Trump's call for a 10% cap on credit card interest rates for one year also led to selling pressure on some bank stocks.
Shares of Wells Fargo and Bank of America fell about 1%, JPMorgan Chase slipped about 1.5%, Citigroup dropped about 3%, and Capital One sank about 6%.
Analysts said Trump's call to increase affordability could backfire and harm consumers and bank profitability by restricting lending.
Apple shares rose 0.3% after the company announced that its next-generation AI infrastructure would be developed based on Google's Gemini model and cloud technology.
Following the news, Alphabet, Google's parent company, briefly reached a market value of $4 trillion.
In addition, Nvidia and Eli Lilly announced they would spend $1 billion over five years on a joint research laboratory. While Nvidia's shares remained flat, Eli Lilly's shares gained 1.6%.
