LIVE MARKETS-Wall Street falls on Fed independence, card rate worries

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

WALL STREET FALLS ON FED INDEPENDENCE, CARD RATE WORRIES

Wall Street's major indexes opened lower on Monday with investor angst about Federal Reserve independence and credit card interest rates resurfacing over the weekend. The S&P 500 .SPX and the Nasdaq Composite .IXIC had recovered most of their losses after the first half hour of trading, while the Dow Jones Industrial Average .DJI is the weakest main index.

The worries erupted after U.S. President Donald Trump's administration ramped up pressure on the Fed by threatening to indict Chair Jerome Powell over comments to Congress about a building renovation project, an action Powell called a "pretext" to gain more influence over interest rates, which Trump wants cut dramatically.

Bespoke Investment Group analysts wrote that prior to the Powell news it looked like anti-regime protests in Iran or the U.S. president's call for a one-year cap on credit card interest rates at 10% would be the major news catalysts for the start of the week.

Regarding Powell, Bespoke writes that the situation looks political and that providing he did nothing wrong, the Fed chair should have nothing to worry about. But they see a bigger question. With Powell's term due to end in May against this backdrop "who in their right mind would ever want Powell's job?"

With all this going on, at least in the premarket they saw signs of "a possible return of the 'sell America' trade."

Meanwhile financial stocks are sinking on Monday after Trump's call for a cap on credit card interest rates with consumer credit companies under pressure. Synchrony Financial SYF.N is leading declines, down 6.5%, with Capital One COF.N off 5.6%, and American Express AXP.N down 4.2%, not that far behind.

Weighing down the Dow are AXP and Visa V.N.

In S&P 500 sectors, financials .SPSY are taking the biggest hit, while consumer staples .SPLRCS is the biggest gainer.

Here is your morning snapshot from 10:07 a.m. ET/ 1507 GMT :

(Sinéad Carew)

EARLIER ON LIVE MARKETS:

AS AI MARCHES FORWARD, IS THE JOB APOCALYPSE CLOSER THAN WE THINK? CLICK HERE

COOLING CORRELATIONS HAVE SOME TRADERS SWEATING CLICK HERE

CONSTRUCTION TO STAY POPULAR, BUT BOFA TURNS SELECTIVE CLICK HERE

EUROPEAN MEDIA: FEAR VS. FUNDAMENTALS CLICK HERE

DEFENCE STOCKS HAVE 'MORE ROUNDS TO FIRE' - BERENBERG CLICK HERE

MARKETS ON EDGE AS FED-TRUMP ROW RATCHETS UP A NOTCH CLICK HERE

EUROPE BEFORE THE BELL: AN UNSETTLED START AS TRUMP-POWELL RIFT ESCALATES CLICK HERE

POWELL'S PUNCH BACK JOLTS MARKETS CLICK HERE