Wall Street ticks to records after shaking off worries about Trump's feud with the Fed
On Monday, January 12, 2026, Wall Street reached new record highs despite initial concerns over a growing conflict between President Trump and the Federal Reserve, which some experts fear could impact the Fed's independence and potentially lead to increased inflation. The S&P 500 and Dow Jones each rose by 0.2%, while the Nasdaq gained 0.3%. Gold prices hit a record high, and the U.S. dollar weakened amid market unease. Walmart stocks rose 3% after being added to the Nasdaq 100 and forming an AI shopping partnership with Google, whose parent company Alphabet surpassed a $4 trillion valuation. Credit card companies faced losses after Trump proposed a 10% cap on interest rates, with companies like Synchrony Financial and American Express declining sharply. Attention intensified over the Justice Department's subpoena of Fed Chair Jerome Powell, who claimed it was politically motivated amid Trump’s pressure for lower interest rates. Despite allegations, the Fed continues to operate independently. Political tension may also delay new Fed appointments, potentially prompting Powell to remain on the board after his chair term expires in May. Retailers such as Abercrombie & Fitch and Urban Outfitters saw declines following disappointing forecasts. Globally, Asian markets surged on signs of additional Chinese economic support, while European markets showed mixed results.
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Wall Street rises to records after the unemployment rate improves
U.S. stocks surged to record highs on Friday, January 9, 2026, following a mixed jobs report that showed slower hiring but an improved unemployment rate, reducing immediate expectations for a Federal Reserve interest rate cut. The S&P 500 rose 0.6% to set a new high, the Dow Jones gained 237 points (0.5%), and the Nasdaq climbed 0.8%. Gains were driven by sectors including energy and housing. Vistra surged 10.5% after signing a 20-year nuclear energy deal with Meta Platforms, while Oklo also rose on a similar deal. Homebuilder stocks rallied after President Trump proposed a $200 billion mortgage bond purchase plan to reduce mortgage rates. Lennar, D.R. Horton, and PulteGroup saw significant increases. General Motors stock fell 2.7% after projecting $6 billion in losses due to cutbacks in its electric vehicle division. The bond market saw mixed yields, with the 10-year Treasury falling to 4.16%, while the 2-year rose slightly. Consumer sentiment improved, especially among lower-income households, and inflation expectations eased—potentially giving the Fed more room to cut rates later in the year. Global markets also rose, including France’s CAC 40 and Japan’s Nikkei 225.
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Wall Street pulls back from records as JPMorgan and Delta kick off earnings season
On January 13, 2026, Wall Street experienced a slight pullback from record highs, with the S&P 500 dipping 0.2%, the Dow Jones Industrial Average declining 0.8%, and the Nasdaq falling 0.1%. The market's decline coincided with the kickoff of the latest earnings season, with mixed results from major corporations. JPMorgan Chase's stock dropped 4.2% after missing profit and revenue expectations, partly due to the acquisition of the Apple Card credit portfolio. Delta Air Lines also declined 2.4% after its revenue and profit forecast disappointed investors, despite beating earnings estimates. Chipotle fell 2.3% amid leadership changes. On the positive side, healthcare stocks gained, notably Moderna, which jumped 17.1% after raising revenue expectations and providing product updates. Revvity and Cardinal Health also rose following strong profit and revenue forecasts. Bond yields eased due to inflation data that largely met expectations, suggesting the Federal Reserve may proceed with anticipated interest rate cuts in 2026. However, inflation remains above the Fed's 2% target. Political tensions between the Fed and President Trump raised concerns about the central bank’s independence. Globally, Japan’s Nikkei 225 surged 3.1% on optimism about Prime Minister Sanae Takaichi’s potential policy agenda.
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