Dow futures (YM=F) trade at 49,474, down 252 points (−0.51%) in early action amid the opening of a criminal probe against Fed Chief Jerome Powell by the U.S. Justice Department (DOJ). The S&P 500 Mar 26 (ES=F) is down by 0.64% at press time. It’s a crucial week for financial majors as big bank JPMorgan Chase (JPM) and financial giant Goldman Sachs (GS) are expected to release their earnings reports tomorrow, January 13, and Thursday, January 15, respectively. Delta Air Lines (DAL) is expected to report its quarterly earnings tomorrow.
Investors are closely watching as Fed Chief Powell is under a criminal probe. In a video statement released on the official page of the Federal Reserve on Sunday, January 11, Jerome Powell said the Department of Justice had served the Federal Reserve with grand jury subpoenas on Friday, raising the possibility of a criminal indictment related to his testimony before the Senate Banking Committee last June. He explained that the testimony partly addressed a multi-year project to renovate historic Federal Reserve office buildings.
he added in the official statement,
“I have deep respect for the rule of law and for accountability in our democracy. No one certainly not the chair of the Federal Reserve is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,”
The chair said the threat was not genuinely about his testimony or the renovation project, nor about congressional oversight. The issue ultimately concerned whether the Federal Reserve would be able to continue setting interest rates based on economic evidence and conditions, or whether monetary policy would instead be shaped by political pressure or intimidation, he emphasised.
Jerome Powell was appointed as the Fed chair back in November 2017. He was nominated by President Donald Trump. Joe Biden nominated him for a second term to serve at the helm of the Federal Reserve. The tensions between Jerome Powell and President Donald Trump date back to his first term, with Trump repeatedly criticizing the Fed chief for raising interest rates and publicly pressuring Powell to ease policy.
After returning to the office in 2025, the pressure intensified over the pace of rate cuts and the Federal Reserve building renovation. Trump even threatened to remove Jerome Powell as the Fed Chair, even though the U.S. president does not have the power to do so.
Meanwhile, President Trump denied any involvement in the criminal probe. “I don’t know anything about it,” Trump said, while criticizing Federal Reserve Chair Jerome Powell, in a brief interview with NBC News on Sunday night.
Amid the heated debate on the independence of the Fed, the uncertainty is driving the prices of safe-haven assets. The Gold Feb 26 (GC=F) futures climbed, trading at $4,593.20 per ounce, up $92.30 (2.05%) today.
Against the volatile macroeconomic backdrop, investors are turning attention to significant earnings reports.
Crucial Week for Investors as JPMorgan, Goldman, and Delta are About to Release Earnings Reports
JPMorgan Chase & Co. (JPM) closed at $329.19, shedding 1.01%. The financial major, the Goldman Sachs Group, Inc. (GS), ended the session lower at $938.98, down by 1%. JPMorgan Chase & Co. is anticipated to report earnings tomorrow. The Zacks consensus, based on forecasts from nine analysts, pegs quarterly EPS at $5.01, versus $4.81 reported a year ago. Goldman Sachs is also expected to report results this week, on Thursday, for the fiscal quarter ended December 2025.
According to Zacks Investment Research, the consensus earnings estimate from nine analysts stands at $5.01 per share, compared with earnings of $4.81 per share in the same quarter a year earlier. Similarly, Delta Air Lines (DAL) is expected to report its quarterly earnings tomorrow, an indicator of consumer travel health. Delta Air Lines closed higher on Friday, posting a modest gain of 0.68%.
