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US stocks slide, gold surges after DOJ opens criminal probe into Fed chair

admin — Mon, 12 Jan 2026 15:04:04 +0000

Wall Street was rocked early Monday after federal prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell — rattling investors and igniting fears of political interference at the central bank.

Dow futures tumbled more than 350 points in premarket trading, with the blue-chip contract down 357 points, or 0.72%, while S&P 500 futures slid 39.75 points, or 0.57%, and Nasdaq futures sank 201.25 points, or 0.78%, as investors reacted to the Justice Department’s move against the Fed chair.

Meanwhile, gold surged to record territory as investors piled into safe havens, with spot prices jumping about 2% to around $4,595 an ounce after briefly touching $4,600, while US gold futures for February delivery climbed more than 2% to roughly $4,606.

The US Attorney’s Office for the District of Columbia has opened a criminal probe into Powell over his June 2025 testimony to Congress about the scope and cost of the Federal Reserve’s $2.5 billion renovation of its Washington, DC headquarters, officials familiar with the matter told the New York Times.

Stock futures fell early Monday morning on Wall Street after it was learned that the Justice Department had opened a criminal investigation against Fed Chair Jerome Powell. via REUTERS

Last April, The Post was first to report that the Fed was moving forward with extensive renovations as part of a $2.5 billion overhaul of the Marriner S. Eccles Federal Reserve Board Building on the corner of 20th St. and Constitution Ave. — despite being more than $700 million over budget.

The newly announced probe was approved in November by Jeanine Pirro, the Trump ally tapped to run the US attorney’s office last year, and includes a review of Powell’s public statements and an examination of the Fed’s internal spending records, according to officials briefed on the investigation.

Powell confirmed late Sunday that the Justice Department had served the Fed with grand jury subpoenas and warned that prosecutors were threatening a criminal indictment tied to his testimony, calling the move an unprecedented attack on the central bank.

He said the investigation was politically motivated retaliation for the Fed’s refusal to bow to White House pressure to slash interest rates, arguing the threat of prosecution was meant to intimidate policymakers into aligning monetary decisions with President Trump’s demands.

President Trump and Powell have been at odds over interest rate cuts. AP

Powell accused President Trump of using the investigation as an intimidation tactic. AFP via Getty Images

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a statement reacting to the investigation on Sunday.

“I have served at the Federal Reserve under four administrations, Republicans and Democrats alike,” the central bank chief added.

“In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment.”

The Post has sought comment from the White House and the Justice Department.

Powell, a former private-equity executive and Washington lawyer, was first nominated to lead the Federal Reserve by Trump in 2017 and confirmed by the Senate the following year, inheriting an institution designed to operate independently from the White House.

While his term as chair expires in May 2026, his seat as a Fed governor runs through January 2028, allowing him to remain at the central bank unless removed for cause.

Dow futures tumbled more than 340 points in premarket trading, with the blue-chip contract down 342 points, or 0.69%.

Nasdaq futures sank 201.25 points, or 0.78%, as investors reacted to the Justice Department’s move against the Fed chair.

S&P 500 futures slid 39 points, or 0.56%.

Since returning to office, Trump has repeatedly clashed with Powell over interest rates, publicly accusing him of incompetence and threatening to fire him for refusing to slash borrowing costs despite inflation falling below 3%.

Trump has said he already has a replacement in mind and has floated legal action tied to the Fed’s headquarters renovation as part of his broader pressure campaign.

The $2.5 billion project broke ground in 2022 and is funded entirely by the Fed through interest income and fees, not congressional appropriations or taxpayer dollars.

Planning documents from 2021 included features such as private dining rooms, special elevators, water features, marble upgrades and a rooftop terrace, though Powell later told lawmakers many of those elements were scrapped as plans evolved.

The Fed has said cost overruns — now estimated at roughly $700 million — stem from inflation, labor and materials costs, asbestos and lead removal, soil contamination and upgrades required to meet modern safety and accessibility standards.

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U.S. stocks hit records despite AI-led tech slide

admin — Fri, 12 Dec 2025 02:20:46 +0000

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Dec. 11, 2025.

Jeenah Moon | Reuters

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The S&P 500 and Dow Jones Industrial Average advanced on Thursday, with both hitting fresh closing records. The Russell 2000 index also ended the session at a new high, following the U.S. Federal Reserve’s quarter-point cut on Wednesday.

But if investors analyze Thursday’s individual stock movements, they will see not all is well with the AI play yet. Oracle shares plunged nearly 11% after reporting on Wednesday weak quarterly revenue, dragging down AI-related names such as Nvidia and Micron.

In extended trading, Broadcom shares fell 4.5%. The chipmaker beat Wall Street’s expectations for earnings and revenue, but CEO Hock Tan appeared to have failed to address worries that their largest customer, Google, might eventually make more of its chips in-house. Rising memory prices would also pressure margins, while the company’s chip deal with OpenAI might not be binding.

That’s why the tech-heavy Nasdaq Composite fell 0.26% despite other major U.S. indexes hitting records. Putting the two together, that means investors are rotating out of tech into other parts of the market. The S&P 500 financials sector, for instance, closed at a fresh record, buoyed by jumps in Visa and Mastercard.

Even though the AI theme seems to be under scrutiny, other sectors are performing well on the back of a resilient U.S. economy — as signaled by Fed officials on Wednesday — and buoyed by interest-rate cut. So long as nothing throws a spanner in the works, looks like we’re all set for a happy holiday season.

— CNBC’s Kristina Partsinevelos contributed to this report.

What you need to know today

New records for U.S. stocks. The S&P 500 and Dow Jones Industrial Average notched fresh highs on Thursday, but the Nasdaq Composite, weighed down by Oracle, underperformed and fell. The pan-European Stoxx 600 closed 0.5% higher.

Disney to invest $1 billion in OpenAI. The media giant will also allow Sora, OpenAI’s video generator, to use its copyrighted characters, under a $1 billion licensing agreement. “We think this is a good investment for the company,” Disney CEO Bob Iger told CNBC.

SpaceX will launch IPO in 2026. Elon Musk confirmed the news in a post on X, which follows multiple articles last week about the firm’s plans to go public. Musk said over the weekend that reports of SpaceX’s $800 billion valuation were “not accurate.”

Broadcom’s fourth-quarter results beat expectations. The chipmaker also saw its net income nearly double from a year ago, and issued a strong forecast for the current quarter on the back of AI demand. But shares slumped in extended trading.

[PRO] Where will Oracle go? Analysts are re-looking their price targets for Oracle stock after the firm released a disappointing and confusing earnings report on Wednesday.

And finally…

An undated editorial illustration of Indian rupee cash bills and a stock market indicator board.

Javier Ghersi | Moment | Getty Images

India’s $3.3 trillion opportunity for global fund houses

This year, the world’s largest fund house, BlackRock, launched multiple mutual fund schemes in India through Jio BlackRock, marking the U.S. firm’s reentry after its exit in 2018. The world’s fourth largest asset manager, State Street, is reportedly looking to buy a stake in an Indian fund house.

Accelerating financialization of Indian household savings is driving flows: as more retail investors participate in capital markets, the opportunities for asset managers to handle those funds are ballooning.

— Priyanka Salve

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SoftBank shares slide nearly 7% amid renewed pressure on AI-linked stocks

admin — Fri, 07 Nov 2025 08:27:41 +0000

The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025.

Issei Kato | Reuters

Shares of Japan’s SoftBank Group resumed their slide on Friday, following a broader slump in AI-related stocks as investors once again grew wary of the sector’s lofty valuations.

The group, which holds a wide range of AI investments across infrastructure, semiconductor, and application companies, saw shares close 6.87% lower, recouping some losses from earlier in the session.

This comes after SoftBank gained nearly 3% in the previous session, having plunged 10% on Wednesday to clock its worst day since April. It saw almost $50 billion in market cap wiped out this week and its worst weekly loss since March 2020, down nearly 20%.

“SoftBank Group’s shares are falling as many bought it as the only listed proxy for OpenAI,” said David Gibson, senior research analyst at financial services firm MST Financial.

The pullback reflects growing caution around the AI sector and a realization that many of OpenAI’s partnerships are still potential rather than confirmed, with funding prospects uncertain, he told CNBC.

OpenAI CEO Sam Altman reportedly said the company has spoken with the U.S. government about potential federal loan guarantees to encourage chip factory construction. His comments came after OpenAI’s CFO suggested the firm hoped for federal help in securing chip financing.

Stock Chart IconStock chart icon

Shares of SoftBank Group fall following renewed pressure on AI-linked stocks

SoftBank holds a controlling stake in U.K.-based semiconductor designer Arm Holdings, whose chips help power mobile and AI processors globally. Shares of Nasdaq-listed Arm slid 1.21% overnight.

Separately, Bloomberg recently reported citing people familiar with the matter that the group considered acquiring U.S. chipmaker Marvell Technology Inc. earlier this year.

Broader decline

Other Japanese tech stocks also declined. Semiconductor testing equipment maker Advantest dropped 5.5%, chipmaker Renesas Electronics fell nearly 4%, Tokyo Electron, a chip production equipment maker, declined 1.35%.

Shares of the world’s largest chipmaker, TSMC, fell 0.34%.

Nvidia-supplier SK Hynix was down 2.2% and South Korean peer and memory chipmaker Samsung fell 1.3%.

The declines in Asian tech stocks also come after AI-related companies in the U.S. fell overnight

Qualcomm dropped almost 4%, despite strong quarterly results, after warning it could lose future Apple business. AMD, a strong performer Wednesday, slipped 7%, while Palantir and Oracle were down about 7% and 3%, respectively. Nvidia and Meta Platforms also finished lower.

The excitement surrounding AI has raised worries that markets might be experiencing a tech bubble. Some experts argue that the valuations of AI companies are starting to resemble the dot-com bubble of the late 1990s, with stock prices rising well beyond realistic profit forecasts.

The economic impact of artificial intelligence is undeniable and market bumps are inevitable, said Laura Cooper, global investment strategist at Nuveen.

“Still, it’s too soon to call a bubble. Today’s AI capex is being funded largely by cash-rich firms with solid balance sheets, not cheap credit or speculation,” she said. “The greater risk isn’t a bubble bursting, but valuation fatigue — investors tiring of paying ever-richer premiums for AI returns that don’t materialize quickly enough.”

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Apple slide puts Microsoft back on top as most valuable public company

admin — Tue, 08 Apr 2025 20:45:26 +0000

Satya Nadella, CEO of Microsoft, laughs as he attends a session at the World Economic Forum in Davos, Switzerland, on January 23, 2020.

Denis Balibouse | Reuters

Apple‘s 23% plunge over the past four trading sessions has again turned Microsoft into the world’s most valuable public company.

As of Tuesday’s close, Microsoft is worth $2.64 trillion, while Apple’s market cap stands at $2.59 trillion.

While the market broadly is getting hammered by President Donald Trump’s sweeping tariff plan, Apple is getting hit the hardest among tech’s megacap companies due to the iPhone maker’s reliance on China.

The Nasdaq is down 13% over the past four trading days, as President Trump’s decision to impose tariffs on imports from over 100 countries have sparked fears of recession brought on by rising prices. UBS analysts on Monday predicted that the price of the iPhone 16 Pro Max could jump by as much as $350 in the U.S.

Both Apple and Microsoft, along with chipmaker Nvidia, were previously valued at over $3 trillion before the recent selloff.

In January, Microsoft issued disappointing revenue guidance. Nevertheless, last week, as Jefferies analysts reduced their price targets on many software stocks, they wrote Microsoft was among the “companies who we view as more insulated” from tariff uncertainty.

Microsoft also had the highest market capitalization of any public company in early 2024, but Apple soon reclaimed the title.

WATCH: Tech stocks struggle with intraday gains amid tariff uncertainty

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