Looking at Monday’s market, this stock market pullback is quite interesting. At the open, it was definitely hit by heavy selling pressure, but it later rebounded. However, major indexes are still trading below water. The Dow fell by more than 108 points, the Nasdaq fell slightly by more than 5 points, and the S&P 500 also dropped by 4.6 points.

The core reason behind this stock market pullback is a bit bizarre. Last Friday, Federal Reserve Chair Powell was served a subpoena by the Department of Justice, involving criminal allegations. He said this himself in a video statement, mainly concerning his testimony last June before the Senate Banking Committee, which related to a $2.5 billion federal building renovation project. The Department of Justice has formally initiated a criminal investigation—something that has truly had no precedent in history.

Powell directly pointed the finger at Trump, saying the latter has been pressuring the Fed to cut interest rates. Trump wants lower borrowing costs to stimulate consumption and investment—something the market understands. The problem is that once the Fed loses its independence, inflation could get out of control. That is what the market is really worried about.

What’s interesting, though, is that as trading progressed, selling pressure gradually eased. Investors remain relatively optimistic about the outlook for interest rates. Although this month’s Fed meeting is expected to keep rates unchanged, the market generally believes that rate cuts will continue in the coming months—at least another quarter-point reduction.

By sector, gold stocks performed especially strongly today. The NYSE Euronext Gold Bug Index surged 4.3%. The computer hardware sector also did well, rising 2%. Utilities and steel stocks also saw some movement, but bank, airline, and oilfield services stocks all fell.

On the global markets side, most of the Asia-Pacific region was up. Japan’s Nikkei 225 rose 1.6%, while China’s Shanghai Composite gained 1.1%. Europe’s market was more mixed: France’s CAC 40 fell 0.2%, the London Financial Times Index rose 0.2%, and Germany’s DAX rose 0.5%.

The bond market was hit this morning as well, but later rebounded, though it is still somewhat underwater. The 10-year Treasury yield rose by 1.6 basis points and is now at 4.187%. To be honest, the logic behind this stock market pullback is somewhat complex. It involves interference on the political level as well as concerns about the Fed’s independence. But judging from traders’ optimism, the market remains positive about the long-term outlook.