Market Snapshot - January 12, 2026

Key Takeaways | Here's the key themes and movements from market data:

Overall Sentiment:

The market is experiencing a degree of volatility and uncertainty, driven by political and legal developments, as well as economic data.

Key Drivers & News:

Powell Investigation:

News that Federal Reserve Chair Jerome Powell is under criminal investigation is creating significant anxiety. This raises concerns about the Fed's independence and future monetary policy. This is driving down bank stocks and boosting gold prices (as a safe haven).

Trump's Policy Interventions:

President Trump's calls for a 10% cap on credit card interest rates are negatively impacting bank stocks.

Earnings Season Anticipation:

There's some optimism around upcoming bank earnings, expecting solid results driven by capital markets activity and shareholder returns. *

Economic Data:

December core consumer prices rose at a 2.6% annual rate, a number that is considered less than expected.

Market Movements:

Bank Stocks Down:

Broadly lower, reacting to both the Powell investigation and Trump’s proposed interest rate cap. Citigroup, Capital One, Bank of America, Wells Fargo, and JPMorgan Chase are all down significantly.

Gold Up:

Rising strongly as a safe-haven asset, fueled by concerns around the Powell investigation and potential political instability. *

Walmart Pops: Up 3% after being added to the Nasdaq-100 index. *

Semiconductor Stocks Fall:

Down in premarket trading as part of the broader risk-off move.

Spot Gold: Up over 1% at $4,610.69 per ounce. *

S&P 500 Futures: Trading around little-changed. *

Invesco KBW Bank ETF (KBWB): Down 0.92%. *

Walmart: Up 3% *

December Core Consumer Prices: Rose at a 2.6% annual rate.

In summary:

The market is reacting negatively to the unfolding situation surrounding Jerome Powell, with a flight to safety evident in the rise of gold and the decline of bank stocks. While economic data is mixed and earnings season is approaching, the political and legal developments are currently dominating the narrative.