Why does the Powell DOJ subpoena matter for markets?

It introduces policy noise at a time when rates drive valuations. If investors fear weaker Fed independence, they may demand higher term premia, lifting yields and pressuring equities. It can also move the U.S. dollar, which affects Canadian financial conditions and returns on U.S. holdings.

How did ^GSPC trade around the news today?

The index is at 6,962.98, down 0.20%, after a 6,938.77 to 6,985.83 range, and sits near a 6,986.33 year high. Momentum is positive but not strong, with RSI at 57.52 and ADX at 12.18. Volume trails its average, hinting at cautious participation.

What should Canadian investors watch next?

Focus on official Fed communication, movements in U.S. yields, and the USD/CAD reaction. Key technical levels are 6,980 to 7,000 on the upside and 6,866 as support. If rate path uncertainty rises, prioritize quality balance sheets, shorter duration, and selective hedging in CAD.

Did Trump deny involvement in the subpoenas?

Yes. Trump denies involvement, saying he does not know about the effort, according to NBC News reporting. The political back-and-forth raises headline risk, but the legal process may be slow. Markets will focus on how this affects expectations for Fed independence and the rate path.

Law and Government

^GSPC Today: January 13 — Powell DOJ Subpoena Stokes Fed Risk

ByHuzaifa Zahoor January 14, 2026January 14, 2026

Powell DOJ subpoena is front and center for markets today. The Department of Justice issued grand jury subpoenas tied to Chair Jerome Powell’s June testimony on building renovations. Powell said the action adds pressure around interest-rate decisions, while Trump denies involvement. The headline lifts Fed independence risk and rate path uncertainty. The S&P 500 index ^GSPC trades at 6,962.98, down 0.20%, but near a record 6,986.33. We explain what this means for Canadian portfolios and the key levels to watch.