US indices close at record highs despite concerns over Fed independence

US stocks ended higher on Jan. 1, as investors looked past concerns related to the launch of a criminal investigation by the Department of Justice into Federal Reserve Chair Jerome Powell over the budget for the renovation of the central bank’s headquarters.

The Dow Jones Industrial Average inched up 0.17%, or 86 points, to 49,590 points, setting a new record close.

The broader S&P 500 index gained 0.16%, or 11 points, ending at an all-time high at 6,977 points, while the Nasdaq Composite climbed 0.26%, or 62 points, to 23,733.

In Europe, the Stoxx Europe 600 rose 0.21% to 610 points, despite mixed performance among the main sectors.

London’s FTSE 100 added 0.16% to 10,140 points, Germany’s DAX surged 0.57% to 25,405 points, while France’s CAC 40 remained stable at 8,358 points.

In Japan, financial markets were closed for a public holiday marking Coming of Age Day and are set to resume normal trading on Jan. 13.

In oil markets, Brent crude futures for March delivery jumped 0.84%, or $0.53, to $63.87 a barrel.

US WTI crude futures for February delivery increased 0.64%, or $0.38, to $59.50 a barrel.

Gold futures for February delivery soared 2.52%, or $113.8, to settle at $4,614.70 per ounce, marking their first record close in 2026.

Federal Reserve Chair Jerome Powell announced on Jan. 12 that he had received a subpoena from the Department of Justice to investigate testimony he delivered before Congress last June regarding the budget for the renovation of the Fed’s headquarters.

He stated that the move was driven by efforts from President Donald Trump’s administration to undermine the central bank’s independence, with a number of former Federal Reserve and US Treasury officials voicing their support for Powell in the face of such pressure.