General Market News

US markets opened mixed on January 13, 2026, despite December CPI data meeting expectations at 2.7% annually and 0.3% monthly. The Dow Jones fell 0.3% while the S&P 500 and Nasdaq posted modest gains. The inflation reading, with core CPI at 2.6% year-over-year, is not expected to shift Federal Reserve policy, with markets pricing the first rate cut for June 2026.

• Core CPI rose 2.6% annually, unchanged from November and the slowest pace since March 2021, with shelter costs the largest monthly contributor at 0.4%
• Markets see almost no chance of a January Fed rate cut, pricing the first reduction for June 2026 followed by a second cut later in the year
• JPMorgan Chase kicked off earnings season with weaker quarterly profits after a $2.2 billion hit from its Apple Card business, while President Trump warned of new tariffs on countries trading with Iran

The World Bank forecasts global GDP growth of 2.6% in 2026, slightly better than June predictions, driven largely by U.S. resilience despite tariff disruptions. However, the institution warns that growth remains too concentrated in advanced economies and too weak to reduce extreme poverty, with the 2020s on track to be the weakest decade for global growth since the 1960s.

• U.S. GDP growth is projected at 2.2% in 2026, up from 2.1% in 2025, with tax incentives offsetting tariff drags on investment and consumption
• Emerging market and developing economy growth will slow to 4.0% in 2026 from 4.2% in 2025, while China's growth decelerates to 4.4% from 4.9% due to fiscal stimulus and non-U.S. export diversification
• The World Bank warns that economic resilience and dynamism 'cannot diverge for long without fracturing public finance and credit markets,' with current growth rates insufficient to prevent stagnation in developing countries

US consumer inflation held steady in December 2024, with the Consumer Price Index rising 2.7% annually and 0.3% monthly, matching economist forecasts. Core inflation remained at 2.6% year-over-year, the slowest pace since March 2021, though still above the Federal Reserve's 2% target. The data reinforces market expectations that the Fed will keep interest rates unchanged at its late January meeting, with a 95% probability of no rate cut.

• Shelter costs drove monthly increases, rising 0.4% and remaining the largest contributor to overall CPI gains, while food prices surged 0.7% with most grocery categories showing increases except eggs, which fell 8.2%
• Energy prices were mixed, with natural gas up 4.4% but gasoline down 0.5%, and some tariff-exposed categories like household furnishings and apparel saw increases while appliance prices dropped 4.3%
• Market pricing shows 95% probability the Federal Reserve will hold rates steady at its January 27-28 meeting, as analysts note inflation remains above target but isn't reheating, giving policymakers little reason to cut rates

Evercore ISI initiated coverage of Reddit stock with a buy rating and a $320 price target, citing significant opportunities for advertising revenue growth and AI potential. The social media platform has already gained over 40% in the past 12 months, and analysts believe it can sustain 20-30%+ revenue growth longer than competitors like Snap and Pinterest due to its high-intent, search-like inventory and new advertising tools.

• Reddit recently launched R-Max, an AI-powered ad tool similar to offerings from Meta, Alphabet, and Amazon, to optimize targeting and bidding for advertisers
• The company is reporting 75% year-over-year growth in advertiser count and has data licensing deals with OpenAI and Alphabet to train AI models, creating a potential recurring revenue stream
• Reddit stock broke out above a $246.15 buy point on January 5 and holds a Composite Rating of 99 out of 99 on IBD's rating system, placing it on the IBD 50 list of leading growth stocks

A DOJ probe into Fed Chair Powell sparked institutional crisis and sent gold to record highs above $420 as investors hedged against potential erosion of central bank independence. JPMorgan beat earnings expectations at $5.23 per share while Venezuelan stocks surged 130% following Maduro's ouster. December CPI data showed inflation holding steady at 2.7% year-over-year, reinforcing expectations for a Fed rate cut pause.

• Gold surged to record highs above $420 per ounce as former Fed chairs condemned the DOJ probe into Powell, with investors rotating to precious metals as protection against geopolitical instability
• JPMorgan delivered earnings of $5.23 per share, beating expectations despite taking losses on the Apple Card partnership exit
• Trump announced immediate 25% tariffs on countries doing business with Iran, threatening major trade partners including China and India while Venezuelan stocks rallied 130% post-regime change

US inflation held at 2.7% year-over-year in December, matching November's rate and meeting expectations, though government shutdown disruptions affected data completeness. Core CPI rose 2.6% annually, showing modest cooling from the 3% rate seen at the start of 2024. Monthly increases were 0.3% for headline CPI and 0.2% for core CPI.

• Headline CPI increased 2.7% year-over-year in December, unchanged from November and in line with forecasts
• Core CPI (excluding food and energy) rose 2.6% annually, with monthly gains of 0.3% for headline and 0.2% for core
• Inflation pace has cooled from 3% in January 2024, while tariff impacts have largely been absorbed by companies or passed to consumers

U.S. core consumer prices rose 2.6% annually in December, coming in 0.1 percentage point below expectations and signaling cooling inflation. The monthly core CPI increased 0.2%, also below forecasts, while headline CPI rose 0.3% monthly and 2.7% annually, meeting expectations. The softer-than-expected core inflation data could influence the Federal Reserve's interest rate decisions.

• Core CPI (excluding food and energy) increased 0.2% monthly and 2.6% annually, both 0.1 percentage point below economist expectations
• Headline CPI rose 0.3% for the month and 2.7% year-over-year, exactly matching consensus estimates
• Federal Reserve officials consider core inflation a more reliable long-term gauge for monetary policy decisions

U.S. inflation held steady in December with the Consumer Price Index rising 2.7% year-over-year, remaining above the Federal Reserve's 2% target. The monthly increase of 0.3% came in below economist expectations, while core inflation ticked up to 2.6% annually, also slightly below forecasts.

• Headline inflation remained at 2.7% annually in December, with a 0.3% monthly increase, both cooler than LSEG economist expectations
• Core inflation (excluding food and energy) rose 0.2% monthly and 2.6% annually, below the 0.3% and 2.7% forecasts respectively
• Persistent above-target inflation complicates Federal Reserve decisions on potential interest rate cuts amid economic uncertainty

Stock futures declined slightly as investors awaited December's Consumer Price Index report and digested early earnings results, including JPMorgan Chase's mixed fourth-quarter performance. The market pulled back after the Dow and S&P 500 closed at record highs for the second consecutive session on Monday. President Trump also announced new 25% tariffs on countries doing business with Iran in response to deadly protests.

• JPMorgan reported adjusted earnings and net interest income above estimates, but revenue fell short; CEO Jamie Dimon described the U.S. economy as 'resilient' amid concerns about potential credit card interest rate caps
• December CPI data expected to show inflation holding steady at 2.7% year-over-year, with core inflation potentially accelerating to 2.8%, keeping pressure on the Federal Reserve to delay rate cuts
• Delta Air Lines shares dropped in premarket trading after issuing 2026 earnings guidance with a midpoint of $7.00 per share, well below the $7.26 analyst consensus

US stock futures edged lower on Tuesday after markets closed at record highs, as investors await December's consumer price index data. Inflation is expected to hold steady at 2.7% annually with a 0.3% monthly increase. Markets are pricing in the first Federal Reserve rate cut for June 2026, with no change expected in January.

• JPMorgan Chase reported weaker quarterly profits after taking a $2.2 billion hit related to its Apple Card business
• Markets see almost no chance of a Fed rate move in January, with the first cut priced for June followed by a second later in 2026
• President Trump warned of new tariffs on countries trading with Iran, adding geopolitical uncertainty as earnings season accelerates

Wall Street reports that President Trump's executive order targeting de-banking practices has significantly reduced federal regulatory pressure on major banks. The order dissolved the 'reputational risk' standard that previously allowed regulators to force banks to close accounts for political reasons, giving financial institutions more freedom to implement balanced policies. Senate Banking Chairman Tim Scott is pushing legislation to permanently codify these changes through the FIRM Act.

• Bank of America has implemented new policies to communicate account closure reasons to clients and reaffirms it never closed accounts based on political affiliation, though regulatory pressure from previous administrations did exist
• The Financial Crimes Enforcement Network (FinCEN) issued updated Suspicious Activity Report (SAR) requirements in October, reducing paperwork burdens that banks previously faced under strict regulatory scrutiny
• The FIRM Act, which would permanently codify protections against political de-banking and cannot be undone by future administrations without Congress, has passed the Senate Banking Committee and awaits a floor vote

Nine global central bank governors, including the Bank of England's Andrew Bailey and ECB's Christine Lagarde, issued an unprecedented joint statement supporting US Federal Reserve Chair Jerome Powell amid threats from the Trump administration. The statement defends central bank independence after the US Department of Justice reportedly threatened Powell with criminal indictment, allegedly related to 'abuse of taxpayer dollars' concerning Fed headquarters renovations. Powell, who steps down in May, claims he is being targeted for setting interest rates based on public interest rather than following Trump's preferences for faster rate cuts.

• The joint statement, coordinated by the Bank for International Settlements, calls central bank independence 'a cornerstone of price, financial and economic stability' and praises Powell's 'integrity' and 'unwavering commitment to the public interest'
• The DoJ investigation allegedly relates to costly renovations at Fed headquarters, though Trump claims he was unaware of it despite repeatedly criticizing Powell for not cutting interest rates fast enough
• Former Fed chairs Greenspan, Bernanke, and Yellen also condemned the move, warning it resembles 'how monetary policy is made in emerging markets with weak institutions' with 'highly negative consequences for inflation'

Markets showed a muted reaction to political threats against Federal Reserve Chair Jerome Powell as investors await December's Consumer Price Index (CPI) data, due Tuesday, and the start of Q4 earnings season. Core CPI inflation is expected to rise to 2.7% from November's 2.6%, while Treasury yields edge higher and only two rate cuts are priced in for 2026, with the next not fully expected until July.

• Global central bank officials plan to release a coordinated statement supporting Powell on Tuesday, following what Powell called 'pretexts' for undermining Fed independence
• U.S. GDP growth exceeded 4% in late 2024, and oil prices rose to November highs after President Trump threatened 25% tariffs on countries doing business with Iran
• Japan's yen plunged to its weakest since July 2024 on snap election speculation, pushing the Nikkei up 3% and driving 10-year government bond yields to their highest since 1999

Federal Reserve Chair Jerome Powell is resisting a Trump administration criminal investigation into him, calling it a 'pretext' to pressure the Fed into lowering interest rates. Powell, whose term ends in May, publicly condemned the White House's attempts to undermine the central bank's independence in an unprecedented video statement. The investigation reportedly focuses on Fed headquarters renovations but follows months of Trump's attacks on Powell for refusing to cut rates.

• Powell successfully guided the economy through a 'soft landing', bringing inflation down from 9.1% in 2022 to 2.3% in April while keeping unemployment at 4.2%
• Trump has repeatedly called Powell 'a stupid person' and threatened to fire him, escalating a campaign to force interest rate cuts that violates Fed independence
• Powell stated the criminal investigation is 'pretext' after the Fed refused to follow 'the preferences of the president', warning the entire institution's future is at stake

Donald Trump announced 25% tariffs on nations trading with Iran, creating uncertainty about whether China, Iran's biggest trading partner, will be exempted under its November tariff truce with the US. China has responded cautiously while likely negotiating behind the scenes, as applying the tariffs would escalate trade tensions and reverse hard-won concessions from both sides.

• China purchases an estimated 80-90% of Iran's shipped oil exports and has significant infrastructure investments in the country, making it a primary target for the tariffs
• The November US-China truce reduced China's average tariff rate from 145% to 47%; the new Iran-related tariffs would push rates above 70%, making most US-China trade unviable
• Precedent exists for exemptions: India faced 25% tariffs for buying Russian oil while China was spared, likely due to broader deal negotiations at the time

Global central bankers issued a collective statement defending U.S. Federal Reserve Chair Jerome Powell after a criminal investigation was launched against him. The investigation reportedly relates to Federal Reserve headquarters renovation matters. The unified international response highlights concerns about threats to central bank independence.

• Central bankers worldwide collectively defended Powell, signaling international concern about the investigation's implications for central bank autonomy
• The criminal investigation relates to matters involving Federal Reserve headquarters renovation
• The Trump administration has reportedly threatened Powell with a criminal indictment, prompting the rare united response from global monetary authorities

The heads of 11 major global central banks, including the European Central Bank and Bank of England, issued a joint statement supporting Federal Reserve Chair Jerome Powell after the Trump administration threatened him with criminal indictment. The statement defends central bank independence as essential to economic stability, while the U.S. probe ostensibly concerns Fed headquarters renovations but is viewed as a pretext for presidential influence over interest rates.

• Eleven central bank chiefs jointly declared 'full solidarity' with Powell and the Federal Reserve System
• The statement emphasized that central bank independence is 'a cornerstone of price, financial and economic stability'
• The criminal probe officially concerns Fed headquarters renovations but is seen as an attempt to gain presidential control over monetary policy and interest rates

Global central bankers are coordinating a statement to support U.S. Federal Reserve Chair Jerome Powell after the Trump administration threatened him with a criminal indictment related to Fed headquarters renovations, which critics view as a pretext to gain presidential influence over interest rates. The statement will emphasize the importance of central bank independence and is expected to include signatures from central bankers worldwide.

• The criminal probe formally concerns Fed headquarters renovations but is seen as a 'pretext' to exert presidential control over interest rate policy
• Central bankers warn that political interference with the Fed would erode trust in its inflation commitment, leading to higher inflation and global financial market volatility
• The U.S. as the world's dominant economy would likely export higher inflation via financial markets, making it harder for other central banks to maintain price stability

Global central banks are preparing a joint statement in support of Federal Reserve Chair Jerome Powell after the Trump administration launched a criminal investigation into him over testimony regarding cost overruns on a Fed headquarters renovation. The statement, expected to be issued under the Bank for International Settlements banner, could be released as early as Tuesday and is open for all central banks to sign.

• The Justice Department investigation targets Powell's comments to Congress about a $2.5 billion renovation of the Fed's Washington headquarters
• Powell publicly rebuked the move as a 'pretext' to gain presidential influence over interest rates, an unusually sharp response from the Fed chair
• The investigation has drawn criticism from former Fed chiefs and key Republican Party members, prompting unprecedented international central bank solidarity

President Trump threatened 25% tariffs on countries doing business with Iran, putting at risk the fragile U.S.-China trade deal reached in October 2025. China, Iran's largest trading partner importing over 1.2 million barrels of Iranian crude daily, has warned it will take 'all necessary measures' to defend its interests. The move could trigger renewed tit-for-tat escalation ahead of Trump's planned April visit to Beijing.

• China imported over 1.2 million barrels per day of Iranian crude as of 2024, more than double 2017 levels, though imports fell 28% in January-November 2025 compared to the prior year
• Analysts warn the tariff threat could escalate to 145% rates as seen in previous trade wars and dash hopes for U.S. soybean exports to China
• The U.S. Supreme Court may rule Wednesday on the legality of Trump's tariff authority, while China could retaliate with sanctions on U.S. firms tied to Taiwan arms sales or antitrust probes of American tech companies