Markets Down as Powell Probe Raises Fed Independence Fears
US stock markets fell in premarket trading as investors turned risk-off after reports that the DOJ opened a criminal investigation into Fed Chair Jerome Powell, escalating tensions between the White House and the central bank. Bank stocks led early losses amid concern over political pressure on monetary policy and fallout from Trump’s call to cap credit card rates at 10%. Volatility rose and gold jumped as investors priced in higher uncertainty around Fed independence.
Banks Slide on Trump Call for Credit Card Rate Cap
Banks and financial services stocks fell in premarket trading after President Trump called for a one-year cap on credit card interest rates at 10%, set to begin Jan. 20, 2026, pending congressional approval. The proposal revived long-running bipartisan efforts to curb card rates but raised concerns about reduced credit availability if enacted. Capital One (COF) is down over -7.0% in premarket trading, reflecting its heavier exposure to credit card lending. Buy-now-pay-later stocks moved higher on expectations some consumers could shift toward alternative financing options.
Trump Threatens to Exclude Exxon From Venezuela
President Trump said he may block Exxon Mobil (XOM) from re-entering Venezuela’s energy sector, criticizing the company for moving too cautiously. The remarks follow CEO Darren Woods calling Venezuela “uninvestable” without major legal and commercial reforms. Trump has urged U.S. oil companies to invest heavily in the country, pledging security guarantees without offering details. Chevron (CVX) remains the only major U.S. oil producer operating in Venezuela.
Abercrombie Pulls Back After Holiday Update
Abercrombie & Fitch (ANF) is down more than -17.0% in premarket trading after the company refreshed guidance that captured the holiday season. Management pointed to strong demand, solid profitability, and record results so far this quarter, driven by momentum across brands and regions. Confidence remains high in the retailer’s long-term strategy, supported by disciplined inventory management, a strengthened omnichannel platform, and a resilient balance sheet, even as tariff costs remain a headwind.
Home Depot Brings Agentic AI to the Aisles
Home Depot (HD) is rolling out agentic AI tools powered by Google Cloud’s (GOOGL) Gemini models to help customers plan and execute home improvement projects. The upgraded Magic Apron AI offers real-time, personalized guidance for DIY customers and professionals, from quick fixes to full renovations. The tools extend HD’s in-store expertise to homes, jobsites, and mobile devices, enhancing customer support across digital and physical channels.
