U.S. futures fell while Asian markets surged on Monday following news that Federal Reserve Chair Jerome Powell had been served subpoenas by the Department of Justice. This development raises the possibility of a criminal indictment related to Powell’s testimony concerning the Federal Reserve’s significant $2.5 billion renovation of two office buildings. This situation is the latest chapter in the ongoing tensions between Powell and former President Donald Trump, who has criticized the renovation as excessive.
Despite the legal concerns surrounding Powell, markets in Asia responded positively. The future for the S&P 500 fell by 0.6%, while the Dow Jones Industrial Average dropped 0.5%. The Nasdaq composite index experienced a slight decline of 0.9%. In contrast, Hong Kong’s Hang Seng Index rose by 1.2% to 26,547.64, and the Shanghai Composite Index jumped 1% to 4,163.11, buoyed by reports of potential economic support measures from Chinese leaders.
In South Korea, the Kospi gained 0.8% to 4,624.79, while Australia’s S&P/ASX 200 increased by 0.5% to 8,759.40. Taiwan’s Taiex also saw a rise of 0.9%. Notably, Tokyo’s markets remained closed for a holiday. The U.S. dollar held steady against the Japanese yen, trading at 158.02 yen.
The U.S. stock market had reached record highs just before this downturn. On Friday, the S&P 500 climbed 0.6% to 6,966.28, surpassing its previous all-time high. The Dow Jones Industrial Average rose 0.5% to 49,504.07, also setting a record. The Nasdaq composite led the gains with a 0.8% increase, closing at 23,671.35.
According to the U.S. Labor Department, hiring in December was lower than anticipated, which may signal a “low-hire, low-fire” job market, potentially averting a recession. An update on U.S. inflation is expected on Tuesday, followed by a report on wholesale prices on Wednesday.
In corporate news, Vistra surged 10.5% after securing a 20-year agreement to supply electricity from three of its nuclear plants to Meta Platforms. This move reflects a trend where major tech companies are increasingly investing in sustainable energy solutions for their data centers.
Homebuilding companies also saw gains following Trump’s announcement of a plan to reduce mortgage rates. He proposed a $200 billion purchase of mortgage bonds, similar to past Federal Reserve strategies aimed at lowering rates. Shares of Builders FirstSource rose 12%, while major homebuilders like Lennar, D.R. Horton, and PulteGroup experienced increases of 8.9%, 7.8%, and 7.3%, respectively.
In contrast, General Motors faced a 2.7% decline after announcing a $6 billion loss for the last quarter of 2025 due to its pullback from electric vehicles, compounding a previous $1.6 billion charge. This downturn is attributed to diminished demand for electric vehicles, influenced by fewer tax incentives and relaxed fuel-emission regulations.
As the global market reacts to these developments, the euro strengthened against the U.S. dollar, rising to $1.1671 from $1.1635. U.S. benchmark crude oil prices increased by 8 cents to $59.20 per barrel, while Brent crude rose by 9 cents to $63.43 per barrel. Precious metals also saw upward movement, with gold prices climbing 1.9% and silver jumping 6.4%. Copper also made gains, increasing by 1.4%.
The unfolding situation surrounding Powell and the Federal Reserve continues to generate significant attention, highlighting the intersection of legal challenges and economic policy in the current financial landscape.
