US Stock Market Hits Record High Amid Fed Independence Controversy and Rising Gold Prices

On the 12th (local time), despite concerns over the Federal Reserve’s independence and mounting political risks, Wall Street’s major indices all closed at record highs. The Dow Jones Industrial Average rose about 0.2%, finishing in the upper 49,000s; the S&P 500 gained roughly 0.3%, setting another intraday high; and the Nasdaq Composite, driven by its heavy weighting in technology, advanced around 0.4%. Tech and communication stocks—buoyed by expectations of artificial intelligence dividends—and consumer names led the upside, while financials lagged amid heightened political pressure on the Fed.

All eyes now turn to December’s Consumer Price Index, due on the 13th. While headline inflation slowed modestly in the prior release, sticky core prices—driven by services—remain elevated, reinforcing the view that this report could be pivotal in timing the Fed’s first rate cut. Consequently, rate-sensitive tech and growth stocks preemptively rallied, whereas cyclical and value sectors, wary of future margin headwinds, underperformed. In the Treasury market, medium- and long-term yields traded within a narrow range, underlining a backdrop of “measured risk-taking plus soft-landing optimism.”

On the policy front, news that the U.S. Department of Justice has opened a criminal inquiry into the Fed chair—and the Fed’s vehement public pushback—stoked market unease. After the chair labeled the probe and any potential indictment a “political tool to pressure rate cuts,” fears of impaired Fed independence intensified, boosting volatility in financial and banking shares. Still, investors ultimately prioritized the medium-term monetary outlook over short-lived political turbulence, sending equity indices higher by day’s end. Some market participants now argue that as political pressure mounts, the Fed will double down on its autonomy by maintaining a gradual, carefully paced easing path.

O by Zlaťáky.cz

On the global stage, precious metals and commodity prices surged. Gold extended its rally on safe-haven demand amid the Fed–administration standoff and investigative uncertainty, and silver climbed past $80, trading near historic peaks. These moves suggest that, despite a strong dollar, hedging demand against political and geopolitical risks remains robust. Oil, meanwhile, popped on hopes of a U.S.-led supply reshuffle following Venezuela’s regime change, then paused after the initial spike. With risk appetite, political uncertainty, and Fed independence debates all at play, investors are gearing up for the CPI release on the 13th and later readings on producer prices and retail sales to assess whether the “soft landing plus gradual easing” scenario holds.