4:15pm: New records
Traders cast aside concerns about the Fed’s independence on Monday, sending stocks to new all-time highs.
The Dow Jones rose 0.2% to 49,590 points and the S&P 500 also added 0.2% at 6,977 points – both record high closing levels. The Nasdaq was up 0.3% at 23,733 points.
As investors flocked to safe-haven assets, gold added 2.3% to close above $4,600, while silver surged 7.2% to $85.
3:36pm: Proactive news headlines
- Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF), a North American producer and distributor of ultra-high purity (UHP) hydrogen and industrial gases, announced the closing of a non-brokered private placement, raising gross proceeds of $3.1 million.
- NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) announced that it has finalized multiple term sheets with strategic investors to fund Phase 1 of its proposed Battery Anode Facility (BAF) in the Industrial City of Abu Dhabi, United Arab Emirates.
- EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) has reflected on its key accomplishments in 2025 and outlined its planned operational, permitting, and commercial milestones for 2026 as the company advances the Scotia Mine near Halifax toward a production decision.
- Medicus Pharma (NASDAQ:MDCX) announced that it will present new Phase 1 clinical data on its long-acting gonadotropin-releasing hormone (GnRH) antagonist Teverelix at the American Association of Clinical Endocrinology (AACE) Annual Meeting in April 2026.
- Digi Power X Inc (NASDAQ:DGXX, TSX-V:DGX) announced that it has entered into a definitive agreement to acquire approximately $20 million of next-generation NVIDIA B300 graphics processing units from Super Micro Computer, as the company expands its AI-focused digital infrastructure operations.
- C3 Metals Inc (TSX-V:CCCM, OTC:CUAUF) announces that it has restarted full exploration activities in Jamaica after restoring project infrastructure damaged by Hurricane Melissa, which made landfall on the island on October 28, 2025.
1:45pm: In the green
The three major stock indexes all edged into positive territory in the early afternoon as investors shrugged off Fed independence concerns. The Nasdaq was up 0.4%, the S&P 500 was up 0.2% and the Dow Jones added 14 points.
“Thin overnight markets meant that the reaction was overdone, with investors betting that the investigation will make little headway,” IG chief market analyst Chris Beauchamp said.
“In any case, Powell leaves in May and it is likely that the investigation becomes strangely unnecessary after that. It is notable that the VIX has been hit hard for the second time in a week; markets are focusing more on earnings season than on some further drama in Washington.”
12:08pm: Trump proposes credit card interest rate cap
Shares of banks and credit card companies moved lower after US president Donald Trump proposed capping interest rates on cards to 10% for a year starting January 20, rekindling an idea initially put forward during his 2024 presidential campaign.
The average interest rate for credit cards in the US is reportedly about 20%.
In a post on his social media app Truth Social on Friday, Trump did not provide specifics on how the policy would be implemented or ensure compliance.
“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration,” Trump wrote in the post.
On the news, Synchrony Financial (NYSE:SYF, XETRA:SFE) shares plunged 7.9%, Capital One Financial Corp (NYSE:COF) shares fell 6%, American Express Company (NYSE:AXP, XETRA:AEC1) stock was down 4.3%, Mastercard Inc (NYSE:MA) shares fell 1.5% and Visa Inc (NYSE:V, XETRA:3V64) shares were down 1.1%.
11:15am: Week ahead
Wall Street faces a potentially volatile week as the Q4 earnings season kicks off for major banks, key economic data is released, and political developments in the US and Europe add uncertainty.
Financial results will take center stage. JP Morgan and Bank of New York report on Tuesday, Citigroup and Bank of America on Wednesday, and Goldman Sachs, BlackRock, and Morgan Stanley on Thursday.
US banks are expected to post strong 2025 profits, with $157 billion projected across the six largest institutions, though Q4 trading gains may taper. According to Deutsche Bank analysts, “this pattern may continue if earnings from financials beat expectations and provide a sector tilt, but weakness in any major name could weigh on sentiment.”
Economic indicators will also influence markets this week. December’s CPI report is due Tuesday, with forecasts of a 0.3% monthly increase and the annual rate of both core and headline CPI to remain at 2.7%.
PPI data and retail sales follow on Wednesday, alongside housing and manufacturing updates later in the week. DB analysts cautioned that these releases “can inject volatility and influence expectations for the Fed’s rate path.”
Fed commentary is expected throughout the week. NY Fed President John Williams is scheduled to speak Monday evening and again Wednesday, with other officials including Bostic, Barkin, Kashkari, and Musalem providing remarks throughout the week. DB highlighted that investors will watch “whether the latest jobs or inflation data have altered their assessments of the balance of risks.”
Political developments may add further complexity. Kathleen Brooks, XTB research director, noted that markets are tracking President Donald Trump’s domestic interventions and foreign policy moves.
She wrote that Trump’s “series of demands on US industry and business suggests that his second term could be notable for moving away from core Republican capitalist values” while also pursuing policies that could affect interest rates.
In Europe, French political risk remains under scrutiny, with confidence votes potentially delaying the 2026 budget. “If the French government does collapse, and if fresh elections are called, then we could see more upward pressure on French borrowing costs at a difficult time for the global economy,” Brooks wrote.
9:55am: Gold surges on Fed fears
US stocks retreated from record highs on Monday morning as investors reacted to the news that prosecutors have opened a criminal investigation into Federal Reserve chair Jerome Powell.
The Dow Jones was down 0.3% at 49,334 points, the S&P 500 was down 0.1% at 6,961 points, and the Nasdaq fell 9 points to 23,665 points.
Concerns about Fed independence saw traders turn to safe haven assets like gold, with the yellow metal surging to a record high above $4,600.
"Beyond monetary and political concerns, gold remains well supported by ongoing geopolitical risks,” City Index market analyst Fawad Razaqzada said.
“While tensions had eased somewhat in recent weeks, the latest flare-up involving Iran has reintroduced a fresh layer of uncertainty. The key risk is the prospect of renewed US involvement in the region."
Razaqzada added that he continues to expect that Powell will serve out the remainder of his term as Fed chair, and monetary policy will remain guided by incoming economic data rather than political influence. “If that proves correct, attention should shift back to the macro picture fairly swiftly, with CPI and retail sales firmly in focus this week,” the analyst said.
7:45am: Retreat from record territory
US stock futures fell on Monday morning, retreating from record highs after a criminal investigation into Federal Reserve chair Jerome Powell sparked fresh concern over the central bank’s independence.
Dow Jones futures slipped 0.7%, with S&P 500 futures down 0.55%. The Nasdaq 100 led losses, falling close to 0.8% after a string of record closes last week.
The sell-off followed confirmation that the US Department of Justice has subpoenaed the Fed and opened an investigation into Powell’s testimony over the cost of building renovations.
In a strongly worded response, Powell described the investigation as politically motivated and part of a wider effort by President Trump to force rate cuts ahead of the November election.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said.
The deepening rift between the Fed and the White House has rattled investors, with the dollar falling to a three-week low and gold rising to new record highs as demand for safe havens grew.
Markets are also bracing for key US inflation data this week, with December’s consumer price index due on Tuesday. Traders continue to price in no interest rate cut at the Fed’s January meeting, following last week’s jobs report, which showed a steady cooling in the labour market without signalling economic weakness.
Tensions overseas also contributed to the risk-off tone. Unrest in Iran continues to escalate, and President Trump has refused to rule out military action in response. Oil prices eased slightly as investors weighed the impact of possible disruption to global supply chains.
Elsewhere, geopolitical pressure is building. Washington has tightened restrictions on Cuban involvement in Venezuelan oil exports, and President Trump has revived tensions with Denmark by again floating the idea of taking control of Greenland, saying the US could act “whether they like it or not”.