Asian markets rose on Monday after Federal Reserve Chair Jerome Powell said that the Department of Justice had served the central bank with subpoenas, but U.S. futures fell.
The most recent development in President Donald Trump's conflict with the Fed is the prospect of a criminal indictment for Powell's testimony over the Fed's building upgrades. The Fed's $2.5 billion makeover of two office buildings has drawn criticism from Trump for being exorbitant.
While gold and other precious metals, which are frequently employed as hedges during uncertain times, increased, markets seemed to accept the news.
The Dow Jones Industrial Average and S&P 500 futures saw a 0.5% decline. The Nasdaq composite index's future saw a 0.8% decline. In Asia, the Shanghai Composite index increased by 0.4% to 4,135.31 and Hong Kong's Hang Seng increased by 0.4% to 26,337.92.
For a holiday, Tokyo's markets were closed. Nonetheless, the US dollar appreciated vs the Japanese yen, rising from 157.90 late Friday to 157.96 yen. Australia's S&P/ASX 200 was up 0.4% at 8,752.90, while South Korea's Kospi gained 0.4% to 4,652.10.
U.S. equities reached all time highs on Friday after the Federal Reserve released a mixed report on the country's employment situation that might postpone another rate decrease but does not completely rule it out.
Powell's tenure as chair expires in May, and Trump administration representatives have hinted that he may choose a possible successor this month. Additionally, Trump has attempted to fire Lisa Cook, the governor of the Fed.
Trump said he was unaware of the Powell inquiry in a quick interview with NBC News on Sunday. Trump responded, "No," when asked if the inquiry was meant to put pressure on Powell about rates.
That is not how I would even consider doing it. The S&P 500 surpassed its previous all-time high achieved earlier in the week, rising 0.6% to 6,966.28.
The Dow Jones Industrial Average also reached a record, rising 0.5% to 49,504.07. With a 0.8% increase and a closing price of 23,671.35, the Nasdaq composite topped the market.
Although the unemployment rate improved and was better than anticipated, the U.S. Labor Department reported that employers hired fewer workers in December than economists had predicted.
It reaffirmed the possibility that the U.S. labor market is in a "low hire, low fire" situation, potentially preventing a recession. Power company Vistra signed a 20 year contract to supply electricity from three of its nuclear facilities to Meta Platforms, causing it to leap 10.5% on Wall Street and help lead the market.
In order to electrify the data centers driving their advancements in artificial intelligence technologies, large tech businesses have been entering into a series of such agreements.
After announcing that it had also inked a deal with Meta Platforms to help acquire nuclear fuel and go forward with its project to establish a facility in Pike County, Ohio, Oklo saw a 7.9% increase.
Following President Donald Trump's announcement of a plan to cut mortgage rates, homebuilders and other housing related businesses had a solid first trading session.
In the same way that the Fed has previously purchased bonds backed by mortgages to lower mortgage rates, Trump asked for the purchase of $200 billion in mortgage bonds late on Thursday.
Along with Vistra, Builders FirstSource, a provider of building supplies, saw one of the largest rises in the S&P 500, rising 12%. Lennar increased 8.9%, D.R. Horton increased 7.8%, and PulteGroup increased 7.3% among homebuilders.
They assisted in offsetting General Motors' 2.7% decline. The automaker stated that its withdrawal from electric vehicles will cost them $6 billion in the final three months of 2025.
In addition, GM was charged $1.6 billion in the previous quarter. The demand for EVs has been declining due to laxer fuel emission standards and less tax incentives.
The euro increased from $1.1633 late Friday to $1.1657 in other transactions early on Monday. The worldwide benchmark, Brent crude, increased by 7 cents to $63.41 per barrel, while U.S. benchmark crude oil increased by 5 cents to $59.17 per barrel. Silver had a 4.8% increase in price while gold saw a 1.9% increase.
