Stock indexes showed a positive trend today, with the S&P 500 Index ($SPX) up by +0.28%, the Dow Jones Industrials Index ($DOWI) up by +0.15%, and the Nasdaq 100 Index ($IUXX) up by +0.55%. This uptick comes despite initial lower openings, as concerns over the Trump administration’s criticisms of the Federal Reserve raised worries about its independence, leading to a “Sell America” sentiment in US asset markets. Gold and silver prices surged to new all-time highs, while the 10-year T-note yield increased by +2 bp to 4.19%.
Credit card companies and bank stocks experienced a decline today following President Trump’s statement that credit card lenders would be in violation of the law if they fail to cap interest rates at 10% for one year, setting a deadline of January 20 for compliance.
Fed Chair Powell made headlines on Sunday evening, revealing that the Fed had received grand jury subpoenas from the Justice Department related to his June congressional testimony on the Fed’s headquarters renovations. Powell emphasized that the threat of criminal charges stemmed from the Fed’s commitment to setting interest rates based on public interest rather than presidential preferences.
Looking ahead, this week’s focus will be on economic news and updates from the Federal Reserve. Key events include the Dec CPI and core CPI figures, Oct new home sales data, Nov PPI final demand and core PPI numbers, Nov retail sales report, Dec existing home sales data, and a potential Supreme Court ruling on President Trump’s tariffs. Additionally, Thursday may see an increase in weekly initial unemployment claims and the release of the Jan Empire manufacturing survey results. Friday is expected to bring a report on Dec manufacturing production and the Jan NAHB housing market index.
The markets are currently pricing in a 5% chance of a -25 bp rate cut at the FOMC’s upcoming meeting on January 27-28. Overseas stock markets have also shown positive movements, with the Euro Stoxx 50 and China’s Shanghai Composite reaching new highs.
In terms of interest rates, concerns about Fed independence and rising inflation expectations have led to a decline in March 10-year T-notes. European government bond yields are mixed, with the 10-year German bund yield down and the 10-year UK gilt yield up. The Eurozone Jan Sentix investor confidence index exceeded expectations, indicating a positive outlook.
In the US stock market, credit card companies and bank stocks faced declines, while mining stocks saw gains as gold and silver prices surged. Various companies such as Alnylam Pharmaceuticals, Henry Schein, and SLM Corp experienced fluctuations in their stock prices based on recent developments and analyst actions.
Earnings reports for XCF Global Inc (SAFX) are scheduled for January 12, 2026. It’s important to note that all information in this article is for informational purposes only and does not reflect any positions held by the author. This content was originally published on Barchart.com.
