U.S. futures fell on Monday as Asian markets experienced gains, following news that Federal Reserve Chair Jerome Powell received subpoenas from the Department of Justice. These legal developments relate to Powell’s testimony regarding the central bank’s extensive renovations, escalating tensions between Powell and former President Donald Trump, who has criticized the $2.5 billion renovation project as excessive.
Despite the legal challenges facing Powell, markets in Asia responded positively. Hong Kong’s Hang Seng index increased by 1.2% to reach 26,547.64, while the Shanghai Composite index rose 1% to 4,163.11, buoyed by reports of forthcoming economic support from Chinese leaders. In contrast, U.S. futures showed a decline: the S&P 500 was down 0.6%, the Dow Jones Industrial Average fell 0.5%, and the Nasdaq Composite slipped 0.9%.
The U.S. dollar remained stable against the Japanese yen, trading at 158.02 yen, while South Korea’s Kospi index added 0.8%, closing at 4,624.79. In Australia, the S&P/ASX 200 rose by 0.5%, reaching 8,759.40, and Taiwan’s Taiex increased by 0.9%. Tokyo’s markets were closed for a public holiday.
On the preceding Friday, U.S. stocks set record highs, driven by a mixed report on the job market that might delay further interest rate cuts by the Federal Reserve. The S&P 500 climbed 0.6% to 6,966.28, surpassing its previous all-time high. The Dow Jones Industrial Average gained 0.5% to 49,504.07, while the Nasdaq Composite led the market with a 0.8% increase, closing at 23,671.35.
The U.S. Labor Department reported that hiring was slower than expected in December, even as the unemployment rate showed improvement. Analysts suggest that the job market may be in a “low-hire, low-fire” state, which could help stave off a recession. Upcoming reports on U.S. inflation and wholesale prices are anticipated, with updates scheduled for Tuesday and Wednesday.
In corporate news, Vistra significantly boosted market momentum on Friday, soaring 10.5% after announcing a 20-year agreement to supply electricity from three of its nuclear plants to Meta Platforms. This move aligns with a trend among major tech firms that are increasingly investing in energy solutions for their data centers.
Homebuilders also saw gains following Trump’s announcement of a plan to reduce mortgage rates. He proposed purchasing $200 billion in mortgage bonds, similar to previous actions taken by the Fed. Notable stock movements included a 12% jump for Builders FirstSource and increases of 8.9% for Lennar, 7.8% for D.R. Horton, and 7.3% for PulteGroup. These advancements helped to offset a 2.7% drop in General Motors shares, which announced a $6 billion loss for the last quarter of 2025 due to its scaling back on electric vehicles.
In early trading on Monday, the euro rose to $1.1671 from $1.1635 late on Friday. U.S. benchmark crude oil gained 8 cents to $59.20 per barrel, while Brent crude increased by 9 cents to $63.43 per barrel. Gold prices surged by 1.9%, and silver jumped 6.4%, reflecting a shift towards precious metals often sought in times of uncertainty. Copper also saw a rise of 1.4%, indicating a broad interest in commodities amidst fluctuating market conditions.