US stocks tried to end with gains and fresh records on Monday, even amid concerns over Federal Reserve independence after US prosecutors opened a criminal investigation into Chair Jerome Powell.

The Dow Jones Industrial Average (^DJI) nudged above the flat line, while the S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq Composite (^IXIC) added 0.5% on the heels of all-time closing highs for Wall Street stocks. The three indexes began Monday's session sharply lower but began a comeback by late morning.

Other pockets of markets showed more effects, with gold (GC=F) and silver (SI=F) surging to records as investors flocked to safer havens. Bonds ticked lower. The US dollar (DX-Y.NYB) also fell.

Rattled markets took in the drama as Powell said the Justice Department has subpoenaed the Fed, threatening criminal charges over his testimony on building renovations. In a strongly worded statement, Powell said the action is an escalation of President Trump's campaign to pressure the Fed into cutting interest rates.

"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 wrote, describing the concerns cited in the subpoenas as "pretexts."

In corporates, bank and other financial services stocks slumped thanks to a warning to credit card issuers from Trump. Lenders will be "in violation of the law" if they don't cap interest rates at 10%, he told reporters on Sunday. Shares of Capital One (COF) slid 7% to lead early trading losses. Citi (C) and JPMorgan (JPM) also fell in a downbeat start to a week when big US banks will kick off earnings season.

The unsettled mood comes as investors get ready for this week's updates on inflation in December, with the Consumer Price Index (CPI) reading due on Tuesday. Markets were overwhelmingly betting on no rate cut from the Fed this month after Friday’s December jobs report showed continued cooling in the labor market without signaling a sharp economic slowdown.

Yahoo Finance's Jen Schonberger reports:

A coterie of former Federal Reserve chairs, Treasury secretaries, and prominent economists spoke out Monday in support of Fed Chair Jerome Powell and expressed alarm over the Justice Department's threat of a criminal prosecution at the central bank.

“The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine [the Fed's] independence,” said the statement signed by former Fed Chairs Janet Yellen, Ben Bernanke, and Alan Greenspan, as well as four past Treasury secretaries who served under both Republican and Democratic presidents.

“This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly,” it continued. “It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success.”

Yellen told CNBC on Monday that the investigation compromises the central bank’s independence and said she thinks financial markets should be more concerned about a situation she called “extremely chilling.”

Read more here.

The US dollar (DX-Y.NYB) weakened against a basket of global currencies on Monday as investors priced in the Department of Justice's criminal probe into Federal Reserve Chair Jay Powell and turned back toward the \\"Sell America\\" trade.

The euro (EURUSD=X) and pound sterling (GBPUSD=X) strengthened through the first half of Monday as the currencies rallied by more than 0.3% and 0.45%, respectively, against the dollar. Both are widely considered global base currencies and typically appreciate when the dollar weakens as foreign exchange traders shift capital toward Europe.

The Swiss franc (CHFUSD=X), commonly considered a safe-haven currency due to Switzerland's global stability, also strengthened against the dollar, which fell by 0.5% against the Swiss unit.

In Asia, the Japanese yen (JPYUSD=X) remained depressed against the dollar as investors stayed invested in higher-yielding currencies, while volatility remained constrained.

In physical flight-to-safety markets, gold and silver both popped through Monday's trading session, gaining more than 2% and 8%, respectively, as investors look for stable, safe investments.

Commodities trading house Vitol has begun shipping naphtha to Venezuela, supplying a critical component for oil exports coming out of the South American hotspot.

On Monday, the Dutch commodities giant chartered a crude oil tanker to load around 460,000 barrels' worth of naphtha, an oil diluent, from the US Gulf Coast and ship the product to Venezuela, according to the energy intelligence firm Kpler.

Naphtha, a light petroleum petrochemical often mixed with heavy crude oil to make it easier to transport, is critical in Venezuela. The country's primary Merey 16 type of crude is an extra-heavy grade of oil, meaning it is highly viscous and dense, and therefore cannot be moved through pipelines without being mixed with a diluent substance such as naphtha.

Since the US's extraction of Venezuelan leader Nicolás Maduro, the Trump administration has been pressuring American oil companies to commit billions of dollars in capex for reentering and rebuilding Venezuela's oil industry.

The country is widely understood to be sitting on the world's largest proved oil reserves, but the oil's primary heavy grade makes it difficult to transport and refine, eating into margins for oil producers.

However, the first winners have been the international trading houses Vitol and Singapore-based Trafigura, which cut the first deals with the Trump administration due to the firms' ability to quickly begin moving product in and out of Venezuela, according to Reuters.

Vitol's chartering of a crude oil tanker to export naphtha from the US to Venezuela is seen as the first movement of oil products under the Trump administration's new management of the Venezuelan industry.

Naphtha is produced as a byproduct of oil drilling, potentially offering an added line of business for US oil companies willing to reenter Venezuela. Before the US began its blockade of sanctioned oil vessels moving in and out of Venezuela in December, Russia was the largest supplier of naphtha to the South American country.

Yahoo Finance's Ben Werschkul reports:

Sens. Thom Tillis of North Carolina and Lisa Murkowski of Alaska quickly answered the question Monday of whether any Republicans would push back on the Justice Department's criminal probe of Federal Reserve Chair Jerome Powell.

Tillis was out first Sunday night with a statement saying he will seek to put a stop to all of Trump's central bank nominees over the issue.

\\"I will oppose the confirmation of any nominee for the Fed — including the upcoming Fed Chair vacancy — until this legal matter is fully resolved,\\" the retiring GOP senator wrote.

Murkowski followed with her own statement on Monday, saying that she spoke with Powell on Monday morning and called the administration's investigation \\"nothing more than an attempt at coercion,\\" adding that Tillis \\"is right in blocking any Federal Reserve nominees until this is resolved.\\"

Read the full story here.

Last year was a great one to be a Wall Street bank. The coming week will tell us just how great 2025 was, writes Yahoo Finance's David Hollerith.

Full-year and Q4 earnings from America's biggest banks roll in this week, with JPMorgan Chase (JPM) kicking off results on Tuesday morning. Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) reports are due Wednesday, with Goldman Sachs (GS) and Morgan Stanley (MS) following on Thursday.

David reports:

Each firm is expected to show that annual profits climbed from the year before. Shares in all six of the major banks outperformed the S&P 500 (^GSPC) in 2025.

... Several equity analysts, including Bank of America's Ebrahim Poonawala, already have enough bluster to call 2026 the third consecutive year that the KBW Nasdaq Bank Index (^BKX), which houses many of the country's biggest banking stocks, outperforms the S&P 500. The BKX rose 29% in 2025, while the S&P 500 rose 17%.

\\"Banks outperformed the S&P 500 for three consecutive years in late 1990s, and then again in early 2000s. We see similarities to both,\\" Poonawala wrote in a recent note to clients.

The industry's earnings outlook today \\"is best it has been post-Great Financial Crisis,\\" Poonawala added.

Read more here.

Gold (GC=F) and silver (SI=F) surged to intraday highs on Monday after the Trump administration's DOJ probe into Fed Chair Jerome Powell and the Fed leader's video warning raised concerns about the central bank’s independence.

Gold futures rose around 3% to trade above $4,600 per troy ounce, while silver futures gained roughly 8%, rising above $85 an ounce.

Yahoo Finance's Ines Ferré reports:

A move lower in the US dollar and equities also helped lift gold, silver, platinum (PL=F), and palladium (PA=F), among other metals.

“If you're wondering why people are buying precious metals at all-time highs, the assault on the Fed is a reminder,” Robin Brooks, a senior fellow in the global economy and development program at the Brookings Institution, said on X on Monday morning.

“That's a deeply destabilizing event that's feeding safe haven demand,\\" he added.

Read more here.

Yahoo Finance's Dan Howley reports:

Google (GOOG, GOOGL) on Monday became the fourth company to join the $4 trillion market cap club, riding a wave of investor excitement related to its latest AI advancements. It's now the second most valuable company after Nvidia.

The search giant joins Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) on the short list of names that have crossed the threshold, though Microsoft has since pulled back below the market milestone. Nvidia topped $5 trillion in October but has since fallen back into the $4 trillion range.

The company is one of the biggest beneficiaries of the AI trade, thanks to its Google Cloud Platform. On Nov. 18, Google debuted its Gemini 3 AI model, which received full-throated endorsements from executives, including Salesforce CEO Marc Benioff.

Read the full story here.

AI chipmaker Nvidia (NVDA) and pharmaceutical giant Eli Lilly (LLY) on Monday announced that the two companies will jointly invest $1 billion to create a lab in San Francisco focused on using AI to accelerate drug discovery.

“Combining our volumes of data and scientific knowledge with NVIDIA’s computational power and model-building expertise could reinvent drug discovery as we know it,\\" said Lilly CEO David Ricks.

The investment builds on Nvidia and Lilly's existing partnership. Lilly in October said it is building an AI factory with Nvidia's Blackwell systems to speed up drug discovery timelines.

LLY shares rose fractionally, while NVDA hovered below the flatline.

Shares of Google parent company Alphabet (GOOG, GOOGL) rose as much as 1.5% early Monday after CNBC reported that Apple (AAPL) chose Google's Gemini model to power its AI-related products.

\\"After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models and we’re excited about the innovative new experiences it will unlock for our users,\\" Apple wrote in a statement obtained by Jim Cramer.

Alphabet stock quickly forfeited these gains after the initial headlines crossed.

The news comes as Google continues to win plaudits for its Gemini model released in late November, which prompted rival OpenAI to declare a \\"code red\\" ahead of the holidays and has seen the latest leg of the AI race take on a new character.

Apple and Google already have an existing relationship, with Google paying Apple billions of dollars per year to be the default search browser inside its Safari browser.

On Monday, Abercrombie & Fitch (ANF) provided an updated holiday quarter outlook that disappointed investors, leading the stock to tank as much as 20% in early trading.

Abercrombie said it expects fourth quarter net sales growth of 5%, the midpoint of its previous range of 4% to 6%.

The mall-based retailer also didn't raise its fiscal year outlook of sales growth of at least 6%, which underwhelmed investors. Abercrombie narrowed its full-year net income per share guidance to $10.30 to $10.40 from a previous range of $10.20 to $10.50.

Concerns about lackluster holiday shopping trends spread to other retail stocks on Monday as well. Urban Outfitters (URBN) stock dropped 11%, while American Eagle Outfitters (AEO) fell 11%.

Read more here from Bloomberg.

Meta (META) said Monday it has appointed President Trump's former deputy national security advisor Dina Powell McCormick as its president and vice chair.

“Dina’s experience at the highest levels of global finance, combined with her deep relationships around the world, makes her uniquely suited to help Meta manage this next phase of growth as the company’s President and Vice Chairman,” Meta CEO Mark Zuckerberg said Monday.

The company said McCormick will \\"ensure our multi-billion-dollar investments execute against our goals.\\" Meta is set to spend $71 billion in 2025, at the midpoint of its capital expenditure guidance range. The social media giant is building a massive AI data center in rural Louisiana as it looks to use artificial intelligence to bolster its core ad business and to rival cloud players Alphabet (GOOGL), Microsoft (MSFT), and Amazon (AMZN).

Meta has hired other Trump-linked personnel as Zuckerberg has worked to align the company with the current administration. In January, Meta brought on a former Trump deputy as its chief legal officer and a top former DOGE lawyer as a lobbyist.

Apple (AAPL) shares fell fractionally Monday, with the stock eyeing a ninth consecutive day of decline — which would mark its longest losing streak since 1991, according to Bloomberg data.

Apple stock's decline came even as closely-watched data from Counterpoint Research on Monday showed the company led the global smartphone market in 2025 with a 20% market share. The iPhone maker accounted for its highest-ever share of global shipments (25%) in the fourth quarter, according to Counterpoint.

Bernstein analyst Mark Newman said the results show Apple is \\"well on track\\" to meet Wall Street consensus estimates for iPhone sales — $78.16 billion, per Bloomberg data — in the first quarter of its fiscal year 2026.

Apple is set to report results for the quarter on Jan. 29.

US stocks slid on Monday at the market open, pulling back from last week's rally to all-time highs as investor concerns mounted over Federal Reserve independence amid the Trump administration's launch of a criminal investigation into Chair Jerome Powell.

The Dow Jones Industrial Average (^DJI) sank 0.8%, while the S&P 500 (^GSPC) fell 0.3%. The tech-heavy Nasdaq Composite (^IXIC) dropped around 0.2%.

Tempus AI (TEM), an $11 billion artificial intelligence company, jumped 12% in premarket trading on Monday after disclosing it reached a record contract value of above $1.1 billion. The preliminary fourth quarter results also suggested a net revenue retention rate of 126% in 2025, the company said.

Tempus AI is a healthcare tech company that provides AI services and data to pharma companies, including players like AstraZeneca (AZN), GlaxoSmithKline (GLAXO.NS), Bristol Myers Squibb (BMY), Pfizer (PFE), Novartis (NVS), and Merck (MRK), among others.

The stock was the top trending ticker early on Monday.

Credit card stocks like Synchrony (SYF) and Capital One (COF) dropped as much as 10% in premarket trading on Monday after President Trump proposed limiting credit card fees to 10% on Friday. It's not clear how Trump plans to cap card fees without Congress's help in passing legislation.

The move, which Trump campaigned on in 2024, drew responses from bank analysts and trade groups on Monday. Yahoo Finance's David Hollerith reports:

\\"Yikes,\\" Wells Fargo analyst Mike Mayo wrote to clients on Monday.

The toll of a one-year 10% cap on fees would hit large bank earnings before tax by an estimated 5%-18%, and \\"wipe out earnings\\" for lenders that exclusively focus on credit cards and related services, such as Capital One and Synchrony Financial, according to Mayo.

Credit card interest rates have jumped significantly in recent years and far exceed the rate paid on other consumer loans. The average rate was 22.30%, according to the most recent Federal Reserve data, up from 16.28% in 2020.

The credit card cap proposal comes as a black eye in what was shaping up to be the financial industry's most favorable regulatory environment in a generation. Five banking industry trade groups, including the American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America, quickly fired off a warning on such a curb within hours of Trump's social media post on the cap.

Read more here.

“Sell America” sentiment rippled through markets on Monday after the Trump administration escalated its attacks on the Fed. The DOJ's threat of criminal charges stoked concerns over the central bank’s autonomy in setting interest rates.

Bloomberg reports:

The dollar (DX-Y.NYB), Treasuries (^TNX) and US equities futures (ES=F) slid after Chair Jerome Powell said the threat of a US criminal indictment was a consequence of a disagreement over monetary policy. While the declines were relatively small, the hot-button issue of the Fed’s independence and the implications for US markets resurfaced in investor debates.

“Any development that raises questions about the Fed’s independence adds uncertainty around US monetary policy,” said Gary Tan, portfolio manager at Allspring Global Investments, which oversees more than $600 billion. “This is likely to reinforce existing trends of diversification away from the dollar and increase interest in traditional hedges such as gold.”

... Some strategists warned that the selloff may deepen if tensions continue to escalate. JPMorgan Asset Management flagged the risk of a steeper Treasury yield curve, meaning long-term rates would rise more than shorter ones, on expectations of more aggressive rate cuts. Lombard Odier sees the dollar and Treasuries coming under more pressure. Invesco Asset Management said non-US assets like European and Asian equities look more favorable.

At the center of the debate is how far the US president can and should influence the nation’s rate stance, which in recent decades have been insulated from political interference. Investors have also questioned whether they should reduce exposure to US assets and the dollar — a theme that dominated global markets last April when President Donald Trump announced universal tariffs.

Read more here.

Economic data: No notable economic data.

Earnings calendar: Wealthfront (WLTH)

Here are some of the biggest stories you may have missed over the weekend and early this morning:

DOJ opens criminal probe into Fed's Powell

Bank earnings to cap banner 2025, set the table for growth

Credit-card stocks sink after Trump warning

Powell raises the stakes in make-or-break fight for the Fed

UnitedHealth used 'aggressive' Medicare tactics: Senate report

Gold storms to records as Fed is hit with subpoenas

Sun Country stock soars on $1.5B buy by Allegiant

Apple leads global smartphone market with 20% share in 2025

Trump 'inclined' to keep ExxonMobil out of Venezuela

Trump: US 'looking' at military strike over Iran crackdown

Yahoo Finance's Jake Conley and Myles Udland lay out the key events in the week ahead:

Looking forward, data on consumer prices out Tuesday, along with producer prices and retail sales on Wednesday, will headline the economic calendar as traders watch for any signal of what the Federal Reserve may do at its meeting at the end of this month.

... Earnings season will also get underway as the country's largest banks lead the pack. JPMorgan Chase (JPM) and BNY Mellon (BK) will report results on Tuesday, while Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) will report on Wednesday.

Other big names set to report in the week ahead include investment banking power Goldman Sachs (GS) and Morgan Stanley (MS), as well as key chip manufacturer Taiwan Semiconductor (TSM) on Thursday.

... Big banks this week are expected to boast about a record year for the industry, and the second straight year their stocks collectively outperformed the market.

Data from FactSet published Friday showed that investors expect fourth quarter earnings to reveal annual profit growth at S&P 500 firms for the 10th straight quarter, with companies in the index collectively expected to report that earnings rose 8.3% over the prior year to end 2025.

Read more here.

Alibaba's (BABA) US shares rose 4% during premarket trading on Monday after China announced it will be launching a probe into competition practices in the food-delivery sector, increasing hopes that authorities will curb subsidy-driven price wars.

Walmart (WMT) stock rose 3% before the bell on Monday. The retailer will join the Nasdaq 100 Index (^NDX), replacing AstraZeneca Plc (AZN), Nasdaq Global Indexes said Friday.

Affirm Holdings (AFRM) stock climbed 4% before the bell on Monday. The Buy Now Pay Later company received some attention from Citi (C) analysts on Friday, who reiterated their Buy ratings on Affirm, alongside Klarna (KLAR) and Block (XYZ).

American Airlines' (AAL) stock fell 3% during premarket trading. In a report released on Friday, analysts at Barclays (BCS) maintained a Hold rating on American Airlines, with a price target of $16.00.

Sun Country Airlines (SNCY) stock rose 17% before the bell on Monday after Allegiant Travel (ALGT) agreed to purchase the budget airline in a cash and stock deal valuing Sun Country at about $1.5 billion, including $400 million in debt.

MT Newswire reports:

Under the terms of the deal, Allegiant will acquire Sun Country at an implied value of $18.89 per Sun Country share, a premium of 19.8% over Sun Country's closing price on Friday, the companies said.

Allegiant will pay Sun Country shareholders 0.1557 shares of Allegiant stock and $4.10 in cash for each share, the companies said.

The deal is expected to close in H2 2026, the companies said.

Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33% of the merged company, respectively, the companies said.

Read more here.