US futures decline as Asian stocks rise amid legal challenge to Fed Chair Powell

Asian Markets Rise Despite U.S. Futures Decline

Asian stock markets opened higher on Monday, even as U.S. futures edged lower following news that Federal Reserve Chair Jerome Powell confirmed the central bank had received subpoenas from the Department of Justice.

This development marks the latest chapter in the ongoing conflict between President Donald Trump and the Federal Reserve. The dispute intensified after Trump criticized the Fed’s $2.5 billion office renovation project, calling it excessive. The possibility of criminal charges related to Powell’s testimony about these renovations has further escalated tensions.

Despite these headlines, investors remained relatively calm. However, traditional safe-haven assets like gold and other precious metals saw price increases amid the uncertainty.

Market Performance Overview

• S&P 500 and Dow Jones Industrial Average futures both dropped by 0.5%.
• Nasdaq composite futures slipped 0.8%.

Across Asia, Hong Kong’s Hang Seng index climbed 0.4% to 26,337.92, and the Shanghai Composite also rose 0.4% to 4,135.31. Tokyo’s markets were closed for a public holiday, but the U.S. dollar strengthened against the yen, reaching 157.96 from 157.90 at Friday’s close.

South Korea’s Kospi index advanced 0.4% to 4,652.10, while Australia’s S&P/ASX 200 gained 0.4% to 8,752.90. Taiwan’s Taiex index increased by 1%.

Recent U.S. Market Highs

On Friday, U.S. stocks reached new records after a mixed jobs report suggested the Federal Reserve might delay further interest rate cuts, though such a move remains possible.

• The S&P 500 rose 0.6% to a record 6,966.28.
• The Dow Jones Industrial Average gained 0.5% to 49,504.07, also a new high.
• The Nasdaq composite led with a 0.8% increase, closing at 23,671.35.

The U.S. Labor Department reported that hiring in December was below forecasts, but the unemployment rate improved, reinforcing the idea that the job market remains stable and may avoid recession.

Leadership Changes and Political Tensions

Jerome Powell’s term as Fed chair ends in May, and the Trump administration has indicated it may announce a successor soon. Trump has also attempted to remove Fed governor Lisa Cook. In a brief interview with NBC News, Trump denied knowledge of the Powell investigation and rejected suggestions that it was intended to influence interest rate decisions.

Corporate Highlights

• Vistra surged 10.5% after securing a 20-year agreement to supply electricity from three nuclear plants to Meta Platforms, reflecting a trend among tech giants to power AI data centers with clean energy.
• Oklo’s shares jumped 7.9% after announcing a deal with Meta Platforms to secure nuclear fuel and advance its Ohio facility project.
• Homebuilding stocks rallied after President Trump proposed measures to lower mortgage rates, including a plan to purchase $200 billion in mortgage bonds.
• Builders FirstSource soared 12%, while Lennar, D.R. Horton, and PulteGroup gained 8.9%, 7.8%, and 7.3% respectively.
• General Motors fell 2.7% after announcing a $6 billion charge related to scaling back electric vehicle production, adding to a previous $1.6 billion charge. Reduced tax incentives and relaxed emissions rules have dampened demand for EVs.

Other Financial Movements

• The euro strengthened to $1.1657 from $1.1633 at Friday’s close.
• U.S. benchmark crude oil edged up 5 cents to $59.17 per barrel, while Brent crude rose 7 cents to $63.41 per barrel.
• Gold prices increased by 1.9%, and silver surged 4.8%.