Financial Markets Jitter on Fed Subpoena Drama and Trump's Speculations

Financial markets faced volatility after the Trump administration considered indicting Fed Chair Powell, alongside geopolitical tensions related to Iran and Venezuela. Despite early losses, Wall Street showed signs of recovery, but the dollar fell sharply. Gold and oil prices surged, while credit card firm stocks plummeted after Trump's proposed interest rate cap.

The stability of financial markets wavered as the Trump administration's potential indictment of Federal Reserve Chair Jerome Powell, combined with rising geopolitical tensions, stirred investor concerns. With early Wall Street losses, both the S&P 500 and Nasdaq Composite managed to inch upwards, while the dollar witnessed a notable decrease.

Gold prices, benefiting from its perceived security, surged to new heights, with oil prices also climbing amidst concern over future supply disruptions from Iran. Dominating headlines, Trump's call for a credit card interest rate cap saw stocks in major finance sectors dip significantly, reflecting growing investor unease.

Market participants are closely monitoring U.S. inflation data and trade figures amidst the dramatic escalation between Powell and Trump's administration. Analysts caution that geopolitical tensions, paired with internal financial debates, may lead to further market fluctuations in the days ahead.

(With inputs from agencies.)