New York, Jan 12, 2026, 07:52 EST — Premarket
- In early premarket trading, S&P 500 E-minis dropped 0.66%, while Nasdaq 100 E-minis slid 0.88%.
- Shares in the financial sector dropped following President Trump’s call to cap credit card interest rates at 10% for one year beginning Jan. 20.
- The U.S. calendar today offers little in major data releases but features a slew of Fed speakers and Treasury auctions; CPI is due Tuesday.
S&P 500 E-minis, the futures linked to the benchmark index, slipped 0.66% to 6,959 points by 5:51 a.m. ET. Dow E-minis were down 0.72%, while Nasdaq 100 E-minis declined 0.88%, market data showed. https://www.reuters.com/business/finance/wall-st-futures-slip-worries-over-fed-independence-financial-stocks-slide-2026-01-12/
The market’s focused on politics and positioning this morning, not just the economic data. Traders face a packed week ahead with bank earnings and an inflation report on the docket. Now, the Fed chair has emerged as a standalone headline risk. https://www.reuters.com/business/finance/global-markets-view-usa-2026-01-12/
Federal Reserve Chair Jerome Powell revealed that the Justice Department issued grand jury subpoenas to the Fed and threatened criminal charges related to his Senate testimony about a renovation project. He described the move as an “unprecedented action” amid what he called “ongoing pressure.” https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm
Goldman Sachs’ chief economist Jan Hatzius acknowledged that the indictment threat has sparked worries over Fed independence. Still, he expects policy decisions to “remain data-driven,” a phrase traders have been holding onto as rate pricing shifts with the news.
Financial stocks led the premarket slide. Citigroup dropped nearly 4%, JPMorgan edged down about 3%, and Bank of America slipped roughly 2.5%. American Express took a bigger hit, falling close to 5%, while consumer lenders Synchrony Financial, Bread Financial, and Capital One tumbled between 10% and 12%. Reuters noted Walmart gained roughly 3% ahead of its anticipated Jan. 20 entry into the Nasdaq-100. Exxon lost around 1% after former President Trump threatened to block its investments in Venezuela.
The catalyst behind the moves in individual stocks was the credit-card announcement. Trump proposed a 10% cap on credit card interest rates for one year starting Jan. 20 but didn’t specify how it would be enforced. Markets quickly priced in a drop in fee and interest income for both lenders and networks. https://www.investing.com/news/economy-news/us-financial-stocks-fall-after-trump-calls-for-credit-card-rate-cap-4441081
JPMorgan analyst Vivek Juneja said the cap “would not address the root of the problem” and might drive borrowers toward pricier unsecured credit, the note cited in the report said. Visa and Mastercard both dipped roughly 2%, while buy-now-pay-later stocks diverged: Affirm climbed, and Block also saw gains.
The market isn’t overlooking a major hurdle. Some analysts contend that a hard cap would probably require legislation and might exceed presidential authority; Jefferies analysts labeled it “dead on arrival” in Congress, the report noted.
Today’s U.S. economic calendar is packed with Treasury auctions and Fed commentary. Treasury is set to auction 6-month bills and 3-year notes at 11:30 a.m. ET, followed by a 10-year note auction at 1:00 p.m. On the Fed front, Atlanta Fed President Raphael Bostic speaks at 12:30 p.m., Richmond’s Tom Barkin at 12:45 p.m., and New York’s John Williams closes the day at 6:00 p.m. https://us.econoday.com/
Tuesday brings the macro data into sharp focus. TradingCharts has the December CPI year-on-year figures out at 8:30 a.m. ET, followed by the U.S. monthly budget statement at 2:00 p.m. ET. At the same time, the big banks kick off their executive commentary, starting with JPMorgan. https://forex.tradingcharts.com/economic_calendar/2026-01-12.html?code=USD
Cross-asset prices are sending a clear message. The dollar is slipping, while gold has surged past $4,600 an ounce—hitting fresh records, Reuters reports. This move suggests the market is bracing for geopolitical tensions and Washington’s noise, on top of the latest data. https://www.reuters.com/business/finance/global-markets-global-markets-2026-01-12/
The next move remains uncertain. A hotter CPI reading might drive yields up and weigh on stocks again, particularly if Powell’s battle keeps rate forecasts volatile; a softer print could reignite demand for rate-sensitive growth stocks and ease pressure on bank valuations. The downside risk for financials is more straightforward: if a rate ceiling seems likely, lenders may tighten credit, which would, in turn, hit consumer spending.
Traders are focused on today’s Treasury auctions, looking for demand signals and any impact on the yield curve. Attention then shifts quickly to Tuesday’s 8:30 a.m. ET CPI release and the initial batch of major bank earnings.
