US futures slip while world shares are mixed as Fed chair Powell faces
legal threat
[January 12, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — U.S. futures sank Monday after Federal Reserve Chair
Jerome Powell said the Department of Justice had served the central bank
with subpoenas.
Markets in Europe were mostly lower after a broad rally in Asia.
The threat of a criminal indictment over Powell’s testimony about the
Fed’s building renovations is the latest escalation in President Donald
Trump’s feud with the Fed. Trump has criticized the $2.5 billion
renovation of two office buildings as excessive.
Markets appeared to take the news in stride, although gold and other
precious metals often used as a hedge in times of uncertainty climbed.
The future for the S&P 500 declined 0.7% and that for the Dow Jones
Industrial Average fell 0.6%. The future for the Nasdaq composite index
slipped 1.1%.
In Germany, the DAX was nearly flat at 25,265.46, while the CAC 40 in
Paris shed 0.5% to 8,319.03. Britain's FTSE 100 edged 0.1% lower, to
10,114.82.
In Asian trading, Hong Kong's Hang Seng gained 1.4% to 26,608.48, while
the Shanghai Composite index jumped 1.1% to 4,165.29 after reports that
Chinese leaders were preparing more help for the economy.
Tokyo's markets were closed for a holiday.
In South Korea, the Kospi added 0.8% to 4,624.79, while Australia's S&P/ASX
200 gained 0.5% to 8,759.40.
Taiwan's Taiex gained 0.9%.
On Friday, U.S. stocks hit records following a mixed report on the U.S.
job market, one that may delay another cut to interest rates by the
Federal Reserve but does not slam the door on it.
Powell’s term as chair ends in May, and Trump administration officials
have signaled that he could name a potential replacement this month.
Trump has also sought to fire Fed governor Lisa Cook.
In a brief interview with NBC News Sunday, Trump insisted he didn’t know
about the investigation into Powell. When asked if the investigation is
intended to pressure Powell on rates, Trump said, “No. I wouldn’t even
think of doing it that way.”
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Specialist Anthony Matesic works on the floor of the New York Stock
Exchange, Thursday, Jan. 8, 2026. (AP Photo/Richard Drew)
 The S&P 500 climbed 0.6% to
6,966.28, topping its prior all-time high set earlier in the week.
The Dow Jones Industrial Average added 0.5% to 49,504.07, and
likewise set a record.
The Nasdaq composite led the market with a 0.8% gain, closing at
23,671.35.
The U.S. Labor Department said employers hired fewer workers during
December than economists expected, though the unemployment rate
improved and was better than expected. It reinforced how the U.S.
job market may be in a “ low-hire, low-fire” state and may hopefully
avoid a recession.
An update on U.S. inflation at the consumer level is due Tuesday,
followed by a report on wholesale prices on Wednesday.
In other dealings early Monday, the dollar fell to 157.77 Japanese
yen from 158.03 yen.
The euro climbed to $1.1690 from $1.1635 late Friday.
U.S. benchmark crude oil gave up early gains, falling 12 cents to
$59.00 per barrel. Brent crude, the international standard, shed 9
cents to $63.25 per barrel.
The price of gold rose 2.3% and the price of silver jumped 6.3%.
Copper was up 1.4%.
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