CNBC Business News Update - Market Open: Stocks Lower, Trump's DOJ To Criminally Investigate Fed Chair, Retail Sales Slowed in 2025 1/12/26

Episode Date: January 12, 2026

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I'm Jessica Eddinger, CNBC, red on the screen as the Dow plunges out of the gate. Markets reacting to President Trump using his Justice Department to open an investigation of the Federal Reserve chair. Jerome Powell, investors do not like it. The Dow down 400 points, American Express shares, dragging it lower, down 4%. The S&P 500 index, down 23, the NASDAQ down 50 points. Some investors surprised and dismayed over what some see is retaliation for the Federal Reserve not lowering interest rates fast enough for President Trump. With this new DOJ probe of the Fed Chair, the FOMC has 12 voting members. The chair controls just one vote.

Well, it's a rocky path today already with what we're seeing the administration do with regards to Jay Powell. Clearly the market doesn't like it. Gold is at an all-time record high. I did think we were going to have some turbulence related to the Fed. But I thought it was going to be when Trump actually picked his new Fed chair. I didn't expect that he'd actually go through with trying to investigate Powell. Yardini researches Ed Yardini on CNBC. At least one Republican senator, North Carolina's Tom Tillis,

vows to block any Trump-Fed appointees in a statement. The senator says if there's any remaining doubt whether advisors within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none. Gold with a fresh all-time intraday high today, $4,621 announced crossing 4,600 for the very first time. Silver with a fresh all-time intraday high, $85.55 an ounce. Bank executives not happy today in a weekend social media. post-President Trump resurrected a campaign promise and called on credit card companies to implement a 10% cap on credit card interest for one year. The average rate on a credit card is about 20% according to bank rate. Many store cards charge interest up to 35%.

Consumers did not stop spending last year, but they slowed down. Total retail sales dropped in 25 from 2024. The CNBC NRF Retail Monitor powered by ACNBC. Actual credit card spending data from Affinity Solutions shows retail sales year-over-year for less than the year prior. Despite sentiment and softer survey-type measurements, consumers feel negative. But NRF chief economist Mark Matthews says consumers gripe but swipe. CNBC's Courtney Reagan. Walmart shares were higher on word it's being added to the NASDAQ 100 index later this month. It'll then go into the popular QQQ-Q exchange traded fund. President Trump pitched big

oil executives to entice them to go into Venezuela and clean up the oil industry there, but the low price of oil right now is making that less than ideal. The president now threatening to sideline Exxon from Venezuela's oil, saying they're playing too cute. Would be homebuyers were out looking over the weekend as mortgage rates hit a three-year low on Friday. The average rate on a 30-year fixed home loan, 5.99%. Allegiant Airlines will buy budget airline Sun Country. Sending Sun Country shares higher today. The PGA Tour begins its season today in Hawaii. I'm Jessica Eddinger, CNBC. Breaking earnings news. Market Reaction this week on CNBC and streaming on CNBC Plus.