On Tuesday, the three major U.S. stock indices experienced slight declines. Former President Donald Trump continued his attacks on Federal Reserve Chair Jerome Powell, alleging he is either incompetent or lacks integrity and has performed poorly in his role. The core U.S. Consumer Price Index (CPI) for December rose less than anticipated, further bolstering market confidence that inflation is cooling as the Fed contemplates its next move on interest rates. Data released Tuesday by the Bureau of Labor Statistics showed the seasonally adjusted core CPI increased 0.2% month-over-month and 2.6% year-over-year, both figures coming in 0.1 percentage points below market expectations. The headline CPI figures, both monthly and annual, matched market forecasts. This report provides some indication that the pace of price increases is moderating towards the Fed's 2% target, albeit from levels that remain elevated. Among the components, shelter costs—a key factor in persistent inflation—rose 0.4% sequentially, constituting the largest single contributor to the monthly CPI increase. This category, which carries a weight of over one-third in the CPI basket, was up 3.2% compared to the previous year.
At market close, the Dow Jones Industrial Average fell by 398.21 points, or 0.80%, to settle at 49,191.99. The Nasdaq Composite dropped 24.03 points, or 0.10%, finishing at 23,709.87. The S&P 500 index declined by 13.56 points, or 0.19%, closing at 6,963.71. JPMorgan Chase & Co. (JPM.US) closed down over 4%, while Intel Corporation (INTC.US) gained 7.3%, and Alphabet Inc. (GOOG.US) advanced 1%. The Nasdaq Golden Dragon China Index fell 1.86%, with iQiyi, Inc. (IQ.US) down 3%, and RLX Technology Inc. (RLX.US) up 2%.
In European markets, Germany's DAX 30 index rose 32.66 points, or 0.13%, to 25,430.43. The UK's FTSE 100 index slipped 7.08 points, or 0.07%, to 10,133.62. France's CAC 40 index decreased by 11.56 points, or 0.14%, to 8,347.20. The Euro Stoxx 50 index climbed 14.16 points, or 0.24%, to 6,030.46. Spain's IBEX 35 index added 10.46 points, or 0.06%, reaching 17,684.26, while Italy's FTSE MIB index dropped 209.70 points, or 0.46%, to 45,522.50.
Bitcoin surged past the $95,000 mark, posting a significant intraday gain of over 4.5%. Ethereum also climbed more than 7%, trading at $3,332.95. Related concept stocks rallied collectively, with Strategy (MSTR.US) jumping over 6.6%, Coinbase Global, Inc. (COIN.US) rising 4%, and Robinhood Markets, Inc. (HOOD.US) advancing more than 2.3%.
The U.S. Dollar Index, which measures the greenback against a basket of six major currencies, increased by 0.28% for the day, settling at 99.134 in late foreign exchange trading. By the close in New York, one euro traded at $1.1649, down from $1.1672 the previous session. One British pound was valued at $1.3435, lower than $1.3466. One U.S. dollar bought 159.11 Japanese yen, up from 158.14 yen, and 0.8006 Swiss francs, rising from 0.7970 francs. It also exchanged for 1.3887 Canadian dollars, up from 1.3871, and 9.2132 Swedish krona, increasing from 9.1693.
Spot gold edged down 0.22% to $4,586.62 per ounce.
In the oil market, the price of West Texas Intermediate (WTI) crude for February delivery increased by $1.65, settling at $61.15 per barrel, a gain of 2.77%. Brent crude for March delivery rose by $1.60, closing at $65.47 per barrel, up 2.51%.
Reports indicate the U.S. government has filed to seize more tankers involved with Venezuelan oil. According to four sources, the administration has applied for seizure warrants aiming to confiscate dozens more vessels associated with Venezuelan petroleum trade. In recent weeks, U.S. military and Coast Guard forces have already impounded five ships in international waters, vessels that were either transporting Venezuelan crude or had previously participated in such shipments. A blockade implemented by the Trump administration in December, preventing sanctioned tankers from moving Venezuelan oil, brought the country's exports to a near standstill. Shipments have resumed this week under U.S. oversight. The sources stated that the government has initiated multiple civil forfeiture lawsuits in district court, providing a legal basis for seizing and confiscating oil cargoes and ships engaged in the trade, with dozens of seizure warrant applications submitted.
Federal Reserve Chair Jerome Powell had disclosed details of the Fed's building project to members of Congress last year. A letter seen by media shows Powell wrote to several senators in July, detailing the Fed's $2.5 billion building renovation project, complicating the Trump administration's claims that he misled Congress. The four-page letter was sent two and a half weeks after Powell testified before the Senate Banking Committee about cost overruns on the project. Powell is currently the subject of a Justice Department criminal investigation concerning his testimony to the committee. Former President Trump and several senior administration officials have accused Powell of misleading Congress regarding the project's scale and scope. Jeanne Pirro, the U.S. Attorney for the District of Columbia overseeing the criminal investigation, stated that subpoenas were issued partly to learn more about "the circumstances of the Chairman's testimony before Congress on this project," noting her office had repeatedly requested information but received "no response." However, the letter suggests Powell provided substantial responses to lawmakers' questions.
A surge in tariff revenue drove the U.S. budget deficit for the 2025 calendar year down to $1.67 trillion, its lowest point in three years. Data from the Treasury Department showed a December deficit of $145 billion, with the cumulative deficit for the first three months of fiscal year 2026 (beginning October 1) reaching $602 billion. Tariff revenue slowed to $28 billion last month, the lowest since July. While tariffs have boosted government income, the Trump tax reform law is beginning to have the opposite effect. December data indicated corporate income tax revenue fell to $65 billion, a 28% decrease year-over-year. Personal income tax refunds are set to be distributed starting this month as tax filing season begins. Tariff revenue for the 2025 calendar year reached $264 billion, approximately $185 billion higher than the previous year. However, this revenue stream could soon be impacted by the Supreme Court, which is preparing to rule on the legality of several Trump-era tariff measures.
A senior U.S. official suggested that the United States could take concrete steps towards acquiring Greenland within "weeks or months," although finalizing any deal would take considerably longer. Thomas Dans, Trump's Arctic Affairs Commissioner and a key proponent of the proposal, indicated the process could advance quickly but would still require winning the trust and support of the Greenlandic people. Trump has stated that the U.S. needs Greenland for strategic and security reasons, particularly to counter Russia. While he has not ruled out the use of military force, Dans believes an invasion is unlikely given existing U.S. control over Greenland's security environment. Preferred options reportedly include a direct purchase of the island, seeking alternative diplomatic arrangements, or encouraging Greenland to pursue independence followed by closer ties with the U.S.
Federal Reserve official Moussalem stated that inflation risks are moderating, and he expects prices to begin moving back towards the Fed's target later this year. Moussalem noted that following last year's interest rate cuts, monetary policy is well-positioned to address risks to price stability or employment. He indicated that current interest rates are near a neutral level—neither stimulating nor restraining the economy—and reiterated that with inflation still elevated, there is no need for further rate cuts. "I expect inflation to move back towards our 2% target this year. Today's inflation data is encouraging in that regard," Moussalem said Tuesday. "I believe the current policy stance is very appropriate, balancing the expected economic path with various risks."
The CME Group announced plans to launch a 100-ounce silver futures contract on February 9, 2026, pending regulatory approval. Jin Hennig, Managing Director and Global Head of Metals at CME Group, stated, "Amid rising geopolitical uncertainty and an accelerating energy transition, silver is increasingly attracting retail traders seeking diversification within a broader range of metals. The introduction of the 100-ounce silver futures contract will enhance market accessibility, allowing more traders to benefit from the liquidity and efficiency of our futures markets." JB Mackenzie, Vice President and General Manager of Futures and International Business at Robinhood Markets, noted, "This new futures contract from CME provides customers a way to participate in silver trading with a lower capital requirement, offering traders greater flexibility."
Boeing Co. (BA.US) surpassed Airbus in jet aircraft sales for 2025, ending a seven-year slump as the American planemaker recovers from a series of tragedies and corporate crises. Boeing reported total orders for 1,175 aircraft for the year, exceeding the 1,000 total sales announced by Airbus the previous day. Boeing's order tally includes the largest single order in its history, unveiled during a Trump visit to the Middle East in May. Boeing delivered 600 aircraft throughout the year, with 63 delivered in December alone, marking the highest monthly delivery rate for the year. Although the annual delivery total lagged behind Airbus's 793, it represents the best performance for the U.S. manufacturer since 2018. Bolstered by support from the White House, Boeing's orders have continued to grow, while its financial position has strengthened by accelerating production following a period of turmoil that began in early 2019 with two fatal 737 Max crashes, which led to the global grounding of its primary profit-generator.
Meta Platforms Inc. (META.US) is reportedly in discussions with EssilorLuxottica to potentially double the production capacity of its AI-powered smart glasses by year-end to gain a competitive edge. Sources indicate that, with steadily growing sales of the Ray-Ban Meta glasses, Meta has proposed increasing annual production capacity to 20 million units or more by the end of 2026. The partners have also discussed the possibility of further boosting capacity to over 30 million units if demand supports it, although sources caution that no final decisions have been made yet.
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