The U.S. stock market opened Monday, January 12, 2026, on a cautious note, with major indexes experiencing early declines as investors digested a flurry of news, most notably a criminal probe involving Federal Reserve Chair Jerome Powell and a new policy proposal from President Donald Trump. This comes after a strong close to last week, which saw the Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) hit record highs following better-than-expected unemployment data.
Major Index Performance
At the start of trading, the benchmark S&P 500 (SPX) opened at 6,944.12 points, down 0.32% from its previous close. The Dow Jones Industrial Average (DJIA) also showed weakness, opening at 49,499.67 points, a marginal decrease of 0.01%. The technology-heavy Nasdaq Composite (IXIC) opened lower at 23,576.88 points, down 0.40%. In early trading, the Dow shed approximately 400 points, declining 0.3%, while the S&P 500 was down 0.1%, and the Nasdaq Composite slipped less than 0.1%. Futures contracts had indicated a weaker open, with S&P 500 futures down 0.6% to 0.7%, Dow Jones Industrial Average futures down 0.6% to 0.7%, and Nasdaq 100 futures down 0.8% to 1.1%. The US500, a CFD tracking the S&P 500, also registered a 0.43% loss from the previous session, falling to 6937 points. This early-week pullback contrasts with Friday's performance, where all three major indexes ended sharply higher, with the Dow and S&P 500 setting closing records.
Key Market Catalysts and News
The primary catalyst for Monday's subdued market opening appears to be the revelation that the U.S. Department of Justice has initiated a criminal probe into Federal Reserve Chair Jerome Powell. Powell confirmed that the central bank received grand jury subpoenas on Friday concerning his Senate Banking Committee testimony last June regarding plans for renovating Fed office buildings. This development has quickly reignited concerns about the independence of the central bank, a factor that often introduces uncertainty into financial markets.
Adding to the market's "indigestion" was President Donald Trump's call for a one-year cap on credit card interest rates at 10%. This proposal immediately impacted financial stocks, with shares of several major credit card issuers experiencing declines. Synchrony Financial (SYF) and Capital One Financial (COF) dropped approximately 8% and 6% respectively, while American Express (AXP) and Citigroup (C) were down around 4% and 3%. JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) also saw their shares fall by roughly 1.5% each. These movements are particularly noteworthy as several of these banks are slated to report their quarterly earnings this week.
In other market movements, safe-haven assets saw a boost. Gold futures surged, crossing $4,600 an ounce for the first time, and were recently up 2.4% to $4,605 an ounce. This rally in gold is attributed to investors seeking refuge amidst market turbulence and elevated geopolitical risks, including ongoing unrest in Iran. Conversely, crude oil prices edged lower, with West Texas Intermediate futures (CL=F) down 0.5% to $58.85 a barrel and Brent crude (LCO=F) shedding 9 cents to $63.25 per barrel. The U.S. dollar index (DXY) also saw a slight dip, down 0.4% to 98.77.
Upcoming Market Events
The week ahead is packed with crucial economic data releases and corporate earnings reports that could significantly influence market sentiment.
Economic Data Announcements:
- Tuesday, January 13: Investors will keenly watch the release of the U.S. Consumer Price Index (CPI) for December 2025 at 8:30 AM ET, a key indicator of inflation.
- Wednesday, January 14: The U.S. Producer Price Index (PPI) for November 2025 will be released at 8:30 AM ET, followed by Existing Home Sales at 10:00 AM ET. The Federal Reserve's Beige Book, offering anecdotal information on current economic conditions, is also due at 2:00 PM ET.
- Thursday, January 15: Retail Sales data for December 2025 and the Empire State Manufacturing Index for January will be released at 8:30 AM ET.
- Friday, January 16: Industrial Production data for December 2025 will be published at 9:15 AM ET.
Federal Reserve Policy:
The Federal Reserve's monetary policy remains a central focus. While the Fed implemented three rate cuts in 2025, analysts widely anticipate a pause at the upcoming Federal Open Market Committee (FOMC) meeting scheduled for January 27-28, 2026. A press conference following the meeting is set for January 28. Consensus expectations suggest one or two more rate cuts in 2026, with the bond market pricing in 50 basis points of easing (two 25-point cuts) over the year. UBS analysts, for instance, expect one 25-basis-point reduction in the first quarter of 2026.
Earnings Releases:
Beyond the banking sector, several other prominent companies have upcoming earnings. Microsoft (MSFT) is scheduled to release its fiscal year 2026 second-quarter financial results after market close on Wednesday, January 28, 2026. Companies reporting earnings today, January 12, 2026, include WaFd Inc (WAFD), Platinum Group Metals (PLG), Lifecore Biomedical (LFCR), and Loop Industries (LOOP). Looking further into the month, SoFi Technologies (SOFI) is among the companies scheduled to report earnings on January 26, 2026.
Major Stock News and Developments
Individual stock movements are also capturing investor attention today. Intel Corporation (INTC) saw its shares surge by 10.8% following a social media post from President Trump indicating a "great meeting" with the company's CEO. Walmart (WMT) shares advanced 2% on the news that it will be included in the Nasdaq 100 index starting January 20.
Conversely, General Motors Company (GM) experienced a 0.3% dip in its stock price after announcing $7.1 billion in special charges for the fourth quarter, citing a restructuring of its China operations and weaker demand for electric vehicles. Vistra Corp. (VST) gained 2.1% after Meta Platforms, Inc. (META) agreed to purchase power from its nuclear plant. Homebuilder KB Home (KBH) saw its shares jump 6.1% amidst a broader rally in the homebuilding sector.
In pre-market trading, Biodesix, Inc. (BDSX) was notably active, up 25.27%, and Valens Semiconductor Ltd. (VLN) soared by 58.97%. SoundHound AI, Inc. (SOUN) also showed strong pre-market performance, up 5.11%, as did Nio (NIO), which rose 2.37%. AstraZeneca (AZN) shares fell 1.6% in London trading after its secondary listing in New York was removed from the Nasdaq-100.
Overall, the U.S. stock market is navigating a complex landscape on Monday, with political and economic uncertainties weighing on investor sentiment, even as individual company news continues to drive specific stock movements. The coming days, particularly with key inflation data and more earnings reports, will be crucial in shaping the market's direction.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.