Major US stock indices opened lower on Monday as renewed criticism from the Trump administration toward the Federal Reserve sparked fresh concerns about the central bank's independence. The market decline was compounded by weakness in financial stocks following proposed regulatory changes affecting credit-card interest rates.

Market Performance at Opening

All three major indices posted declines at the start of trading, with technology stocks leading the downturn.

The Nasdaq Composite experienced the steepest percentage decline among the major indices, falling 0.40% as technology stocks faced selling pressure.

Federal Reserve Independence Concerns

Investor sentiment was dampened by renewed attacks from the Trump administration on the Federal Reserve, raising questions about the central bank's operational autonomy. These concerns have historically created uncertainty in financial markets, as investors value the Fed's independence in making monetary policy decisions without political interference.

The market's reaction reflects ongoing sensitivity to any developments that could potentially compromise the Federal Reserve's ability to conduct monetary policy based on economic fundamentals rather than political considerations.

Financial Sector Under Pressure

Financial stocks declined following the introduction of a proposed one-year cap on credit-card interest rates. This regulatory proposal specifically targeted the banking and credit card industry, creating additional headwinds for financial sector performance.

The proposed interest rate limitations represent a potential regulatory shift that could impact the profitability of credit card operations for major financial institutions, contributing to the sector's underperformance at the market open.

Wall Street prepares for a data-heavy week featuring critical economic reports and the official start of fourth quarter earnings season. Investors will closely monitor December inflation data alongside a series of delayed reports resulting from the 43-day US government shutdown that concluded in November 2025.

The market faces a backlog of important economic indicators, including the November Producer Price Index (PPI), November retail sales data, and October new home sales figures. The absence of consistent inflation readings, combined with signs of labor market stabilization, suggests Federal Reserve policymakers may maintain their current monetary policy stance in the near term.

Economic Data Calendar

The week's economic releases are concentrated in the middle days, with significant reports scheduled across multiple sectors.

Major Bank Earnings Season Begins

The fourth quarter earnings calendar features prominent financial institutions reporting their results. Major banks scheduled to announce quarterly performance include JPMorgan, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley.

Additional companies reporting fourth quarter results include:

• Delta Air Lines
• Taiwan Semiconductor
• BlackRock
• PNC Financial

Market Performance Review

US stock indices reached record highs last Friday following a weak jobs report that may influence Federal Reserve interest rate decisions. The market performance demonstrated broad-based strength across major indices.

Bond Market Activity

Treasury yields showed mixed movements, with the 10-year Treasury yield easing to 4.16% from 4.19% late Thursday. The 2-year Treasury yield increased to 3.53% from 3.49%, reflecting investor positioning ahead of the week's economic data releases.

The combination of delayed economic reports and major financial sector earnings creates a potentially volatile environment for markets as investors assess both historical data and forward-looking corporate guidance.