Powell Probe Roils Markets, Lifts Gold 12/01/2026

HOT stories for today

Market wrap:

• U.S. and global equities ended the week at fresh records, extending gains even as the traditional Santa Claus rally failed to materialize for a third consecutive year. Investor sentiment was buoyed by expectations for interest-rate cuts, continued momentum in artificial intelligence, and signs of broadening market participation. Attention now turns to the Supreme Court, which was expected to rule Friday morning on the legality of former President Donald Trump’s tariffs but instead deferred any comment until Wednesday, Jan. 14. Markets also drew support from a softer-than-expected December jobs report that reinforced the case for easier policy without signaling an imminent downturn.
• Employers added about 50,000 jobs, short of forecasts for 70,000, while the unemployment rate edged down to 4.4%. The data underscored a familiar dynamic: economic weakness is being welcomed by investors, so long as it stops short of recession. In Asia, South Korea’s Kospi closed at a record high as most regional markets advanced. Bitcoin hovered near the $90,000–$91,000 range, signaling stabilization after recent pressure. U.S. stock futures, however, slipped after reports that the Justice Department under Trump has opened a criminal investigation into Federal Reserve Chair Jerome Powell.

Fed Chair Powell says he’s under criminal investigation

• Federal Reserve Chair Jerome Powell said he is under federal criminal investigation related to the $2.5 billion renovation of the Fed’s Washington headquarters and his congressional testimony, warning the probe threatens the central bank’s independence. Powell said the investigation stems from the Fed setting interest rates based on economic conditions rather than President Donald Trump’s demands for faster and deeper cuts. Powell said the Justice Department has issued grand jury subpoenas and rejected allegations of wrongdoing, calling them pretexts amid sustained political pressure. U.S. stock futures fell after his remarks. The investigation, overseen by the U.S. attorney’s office in Washington, drew bipartisan criticism in Congress, with lawmakers warning it could undermine the credibility of both the Fed and the Justice Department. 
• Federal Reserve Chair Jerome Powell said he is under federal criminal investigation related to the $2.5 billion renovation of the Fed’s Washington headquarters and his congressional testimony, warning the probe threatens the central bank’s independence. Powell said the investigation stems from the Fed setting interest rates based on economic conditions rather than President Donald Trump’s demands for faster and deeper cuts. Powell said the Justice Department has issued grand jury subpoenas and rejected allegations of wrongdoing, calling them pretexts amid sustained political pressure. U.S. stock futures fell after his remarks. The investigation, overseen by the U.S. attorney’s office in Washington, drew bipartisan criticism in Congress, with lawmakers warning it could undermine the credibility of both the Fed and the Justice Department.
• Markets are expected to react with higher volatility, with investors likely to demand a greater risk premium on U.S. assets as concerns over central bank independence grow. Strategists say the dollar, Treasuries and equities could face near-term pressure, while gold is expected to benefit from safe-haven demand if political uncertainty around monetary policy intensifies.

Stocks on the move:

• Mobileye (MBLY): Shares jumped about 11% after the self-driving technology company said it would acquire humanoid robotics maker Mentee for $900 million.
• GameStop (GME): The stock rose 2% after the retailer detailed a compensation package for Chief Executive Officer Ryan Cohen that includes targets to grow the company into a $100 billion business.
• Strategy (MSTR): Shares of the bitcoin-treasury firm climbed 5% after MSCI abandoned plans to exclude digital-asset treasury companies from its indexes.
• Chevron (CVX): The energy major gained about 1% after the Financial Times reported the company is preparing a bid for some of Lukoil’s assets alongside private-equity firm Quantum Capital.

Watchlist: NVDA, TSLA, COIN, META, AMZN, INTC, OPEN

Key Economic Events Today:

EST time

06:00 pm: USD FOMC Member Williams Speaks



Earnings

BMO ( Before Market Open): Sify Technologies Limited (SIFY)



The TEFS Analyst team wishes you a successful day!