Outline:
Dow Jones futures declined slightly on Sunday evening, alongside S&P 500 futures and Nasdaq futures. Federal prosecutors have initiated a criminal probe into Federal Reserve Chair Jerome Powell, who claimed it is due to not reducing interest rates quickly enough as President Donald Trump desires.
A significant week of financial results and announcements is approaching.
Please view the video on Investors.com – Taiwan Semiconductor’s significant earnings week alongside JPMorgan and Delta
This week’s stock market surge saw widespread gains, with small-cap stocks leading the way. The Dow Jones, S&P 500, and Russell 2000 all reached new peak levels. Meanwhile, the Nasdaq is approaching record highs, even after experiencing significant declines in technology stocks on Thursday.
JPMorgan ChaseJPM, Goldman SachsGS, Morgan StanleyMS, CitigroupC and Wells FargoWFC will release its financial results next week, along withDelta Air LinesDAL and NvidiaNVDA chipmaker Taiwan SemiconductorTSM. All these names are showing strong performance, with JPMorgan shares and Taiwan Semiconductor in buying ranges, while the rest are typically overextended.
Meanwhile, the JPMorgan Healthcare Conference and the consumer-oriented NRF and ICR conferences are taking place this week. Biotechnology and medical product companies are performing well, along with a reasonable number of retailers and other consumer-related stocks.
Google parent AlphabetGOOGL and GE AerospaceGE is in purchasing zones.
Google and GE Aerospace shares are risingLeaderboard, with Nvidia included in the Leaderboard watchlist. Furthermore, Google stock is onSwingTrader. Taiwan Semiconductor stock is trendingIBD 50.
Dow Jones Futures Today
Dow Jones futures dropped 0.55% compared to fair value. S&P 500 futures decreased by 0.5%, while Nasdaq 100 futures fell 0.8%. The futures markets continued to lose ground following news about the Powell criminal investigation.
Gold futures reached a new high, while silver surged.
Keep in mind the action that took place during the nightDow futuresand elsewhere does not necessarily mean actual trading in the next regular sessionstock market session.
Powell Blasts Criminal Probe
Federal prosecutors in Washington, D.C., have initiated a criminal investigation into Federal Reserve Chair Powell concerning the renovation of the central bank’s headquarters and whether he provided false information to Congress in June 2024. The New York Times first reported the story on Sunday evening, withPowell confirming the investigationin a video, stating that the Department of Justice issued subpoenas, warning of a potential criminal indictment.
Powell stated that the investigation and possible charges are a result of not lowering interest rates quickly enough to meet President Trump’s expectations.
This emerging danger is not related to my testimony from last June or the renovation of the Federal Reserve’s facilities,” Powell stated. “Those are just excuses. The risk of criminal charges stems from the Federal Reserve determining interest rates according to our most accurate judgment for the public good, rather than aligning with the President’s desires.
President Trump stated he had no awareness of the DOJ investigation and challenged Powell’s assertion that the legal matter is related to interest rate reductions. Trump did mention that “interest rates are excessively high.”
Trump has repeatedly and strongly criticized Powell, warning on several occasions that he might dismiss him. Powell’s tenure as Federal Reserve Chair will conclude in May. He may decide to remain in his role as a Fed governor.
Attend IBD specialists as they review top stocks and the market during IBD Live
Stock Market Rally
The stock market experienced a significant and widespread increase last week, reaching new record peaks. Small-cap stocks rose sharply, and all the major indices saw substantial gains. The Dow, S&P 500, and small-cap Russell 2000 all reached new highs.
The Dow Jones Industrial Average rose 2.3% during last week’s trading session.stock market trading. The S&P 500 index increased by 1.6%. The Nasdaq composite rose by 1.9%. The small-cap Russell 2000 jumped 4.6%.
The Invesco S&P 500 Equal Weight ETF, RSP, surged 2.5% and reached a new all-time high.
The First Trust Nasdaq 100 Equal Weighted Index ETFQQEW increased by 2%, even though it fell 1.5% on Thursday.
Similar to the indexes and major ETFs, top-performing stocks demonstrated resilience and widespread gains.
Housing-related stocks, which had been inactive, jumped on Friday followingPresident Trump directed Fannie Mae and Freddie Macto purchase $200 billion in mortgage-backed securities to reduce the cost of borrowing.
The 10-year Treasury interest rate decreased by two basis points, reaching 4.17%.
U.S. crude oil prices increased by 3.1% to reach $59.12 per barrel during the previous week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF FTY increased by 5.05% during the past week. The iShares Expanded Tech-Software Sector ETF FIGV rose 2.3%. The VanEck Vectors Semiconductor ETF SMH gained 4.3%, with significant holdings in Nvidia and Taiwan Semiconductor.
The ARK Innovation ETF, ARKK, increased by 2.5% during the past week, while the ARK Genomics ETF, ARKG, rose by 4.7%.
SPDR S&P Metals & Mining ETFXME jumped 8.7% during the past week. U.S. Global Jets ETFJETS increased by 4.2%, with Delta stock being a significant component. SPDR S&P Homebuilders ETFXHB rose sharply by 8.3%. The Energy Select SPDR ETFXLE moved up 2.2%, while the Health Care Select Sector SPDR FundXLV saw a gain of 1.2%.
The Industrial Select Sector SPDR FundXLI rose by 2.5%, led by GE stock as the leading component. The Financial Select SPDR ETFXLF climbed 1.5%. JPMorgan, Goldman Sachs, Morgan Stanley, Bank of America, Wells Fargo, and Citigroup are among the major holdings.
Top Performing Stocks to Consider and Monitor
Key Earnings Ahead
JPMorgan, Goldman Sachs, Wells Fargo, and other major banks will provide a general indication of the banking sector’s condition, along with important insights about the economy.
Delta Air Lines begins its earnings report for the airline industry, anticipating improved profit margins due to increased travel by high-income individuals.
Taiwan Semiconductor’s financial results and future projections will be vital for the semiconductor industry. Taiwan Semi produces chips for Nvidia,Advanced Micro DevicesAMD, BroadcomAVGO, AppleAAPL along with numerous others. It also spends significantly on semiconductor equipment.
JPMorgan, ICR Conferences
The JPMorgan Healthcare conference, taking place from Monday to Thursday, will feature numerous presentations by major pharmaceutical companies, biotechnology firms, medical product manufacturers, and others. Anticipate a significant amount of news related to the event, such as early announcements, trial results, and acquisition activities.
The National Retail Federation is hosting its NRF 2026 conference from Sunday to Tuesday, featuring several leading retailers. The ICR conference will provide early announcements and insights from various retailers and consumer-focused companies between January 12 and 14.
Google, GE Aerospace at Purchase Levels
Google shares increased by 4.3% to 328.57, marking a new closing high after surpassing 328.83.flat-basepurchase point intraday Friday. Therelative strength lineis at an all-time high on a weekly chart, indicating Google’s better performance compared to the S&P 500.
On Sunday during the NRF convention,Google revealed that its Gemini AI chatbot will team up with WalmartWMT, ShopifySHOP and WayfairW as a shopping assistant.
GE Aerospace stock finished the week with a 0.3% increase, closing at 321.59. The stock experienced a fluctuating week, starting with gains in a buying zone before falling below the 316.67 flat-base level.buy pointon Thursday, then recovering the entry on Friday.
What To Do Now
The stock market is reaching unprecedented levels, with multiple sectors demonstrating robust performance. The leadership within the market is also becoming more widespread. This is an ideal moment to have significant investments, but it’s important not to overexpose oneself to a single stock, group, or theme.
Continue working on watchlists, with many names being added.
The upcoming week is expected to be hectic. Along with JPMorgan, Goldman, Taiwan Semiconductor, and the two major conferences, investors will also receive significant inflation data. Additionally, the Supreme Court may release a decision regarding Trump’s tariffs this week, following the absence of such a ruling on Friday.
Read The Big Pictureevery day to remain aligned with market trends and top-performing stocks and industries.
Please follow Ed Carson on Threads at@edcarson1971 and X/Twitter at @IBD_ECarsonfor stock market news and additional information.
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