U.S. stocks close higher amid criminal probe into Fed chair Powell

China

U.S. stocks close higher amid criminal probe into Fed chair Powell

2026-01-13 11:42 Last Updated At：15:07

U.S. stocks finished slightly higher on Monday, staging a late-session recovery as investors navigated a volatile landscape marked by a criminal probe into the Federal Reserve leadership.

The Dow Jones Industrial Average rose 86.13 points, or 0.17 percent, to 49,590.2. The S and P 500 added 10.99 points, or 0.16 percent, to 6,977.27. The Nasdaq Composite Index increased by 62.56 points, or 0.26 percent, to 23,733.9. Despite the positive close, the market experienced significant intraday turbulence, with the Dow dropping nearly 500 points at its session lows.

Nine of the 11 primary S and P 500 sectors ended in positive territory. Consumer staples and industrials led the gainers, rising 1.42 percent and 0.75 percent, respectively. Financials and energy were the primary laggards, declining 0.8 percent and 0.66 percent.

Market sentiment was initially shaken by an announcement on Sunday from Fed Chair Jerome Powell, who confirmed that federal prosecutors are investigating him over the Fed's multi-billion-dollar project to renovate its headquarters. Powell characterized the probe as an attempt by the Trump administration to compromise the Fed's independence.

Further weighing on the financial sector was a proposal by U.S. President Donald Trump to cap credit card interest rates at 10 percent for one year, which triggered a sell-off in banking stocks amid concerns over restricted lending and reduced profitability. Capital One shares plummeted 6.42 percent, while Citigroup, JPMorgan and Bank of America also recorded losses.

In contrast, retail giant Walmart led the Dow's advance, climbing 3 percent following news of its upcoming inclusion in the Nasdaq 100 index. The company also announced a strategic partnership with Google's Gemini AI to enhance the digital shopping experience.

Investors are awaiting Tuesday's release of the U.S. consumer price index for December 2025. Following last week's cooling labor market data, market participants increasingly expect the Fed to maintain interest rates at their current levels during the upcoming January meeting.

China-EU agreement on price undertaking guidance for EV exports to stabilize supply chains: analyst

The agreement between China and the European Union (EU) on providing general guidance on price undertakings for Chinese exporters of passenger battery electric vehicles (BEVs) to the EU will help stabilize industrial and supply chains, said an industry analyst.

The move aims to address relevant concerns in a more practical, targeted, and consistent manner with World Trade Organization (WTO) rules, according to the Ministry of Commerce in a statement on Monday.

The statement noted that in the spirit of mutual respect, the two sides have conducted multiple rounds of consultations in order to implement the consensus of the China-EU Summit and properly resolve the EU's anti-subsidy case concerning Chinese BEVs.

To that end, the European Commission on Monday issued guidance on the submission of price undertaking offers, covering various aspects that should be addressed in any such offer, including the minimum import price, sales channels, cross-compensation, and future investments in the EU.

Each price undertaking offer is subject to the same legal criteria, and the commission will conduct each assessment in an objective and fair manner, following the principle of non-discrimination and in accordance with WTO rules, the commission said.

On the same day, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) also issued a statement welcoming the positive outcome of the consultations.

Chen Huiqing, director of the CCCME's Legal Department, said that reaching a price commitment helps companies protect their profits from tariffs.

"For companies, reaching a price commitment means profits stay with the firm, instead of being taken away as EU anti-subsidy tariffs," said Chen.

The price-undertaking option will help stabilize supply chains and support global trade, she added.

"After multiple rounds of talks, China and the EU have reached a positive, 'soft-landing' outcome that helps stabilize industrial and supply chains and supports broader China-EU trade and the global trade order," Chen said.