Market Jitters: U.S. Stocks Slide Amid Fed Indictment Threats

U.S. stocks declined following threats against Fed Chair Jerome Powell and a proposal for credit-card interest caps. Concerns over Fed independence and financial stock tumbles intensified market jitters. Investors turned cautious with upcoming bank earnings and the U.S. CPI report in focus.

U.S. stocks took a hit on Monday as the Trump administration's renewed threats against the Federal Reserve raised alarms about the central bank's independence. The administration's move to potentially indict Fed Chair Jerome Powell over testimony on a renovation project was seen as a tactic to exert more control over interest rates.

Market fears deepened with the Wall Street's volatility index hitting its highest since December, while safe-haven gold reached a record high for the year. Financial stocks suffered as President Trump suggested capping credit card interest rates at 10%, causing shares in major financial institutions to plummet.

As investors brace for the fourth-quarter earnings season, led by JPMorgan Chase, attention shifts to Tuesday's U.S. Consumer Price Index report. Amidst the financial turbulence, Walmart's rise positioned it to join the Nasdaq-100 index, while Exxon Mobil faced potential investment blockades in Venezuela by President Trump.