Pre-Market Check: Futures Fall on Powell Investigation; Risk Aversion Spreads

The New York market is preparing to open under tension. Reports of a criminal investigation into the Federal Reserve Chair are circulating. Concerns regarding the independence of the Fed are resurfacing. Risk aversion is spreading, and capital is moving toward safe assets. On the 12th, the market is focused on a specific variable. Fed Chair Jerome Powell is reportedly under criminal investigation by the DOJ. The investigation relates to his congressional testimony regarding headquarters renovation. There is a growing perception that the political independence of rate policy is being tested. This is affecting stocks, foreign exchange, and bond markets. Powell argues that this investigation results from the Fed setting rates based on public interest rather than presidential preference. President Trump stated that the investigation is unrelated to pressure on rate policy. However, the market is concerned that the Fed's policy process could become entangled in political controversy. Investors believe this issue extends beyond Powell personally. It may place a burden on the future selection of the Fed Chair. It could also affect the overall credibility of US monetary policy. The bank earnings season, which begins this week, is increasing investor caution. Additionally, President Trump proposed capping credit card rates at 10% for a year. This has highlighted policy risks for financial stocks. Uncertainty regarding the Fed and regulatory issues are overlapping. We expect increased volatility at the opening of the New York market. At 8:05 AM Eastern Time on the 12th, major stock index futures are showing a decline. S&P 500 futures fell 34.75 points (-0.50%) to 6970.25. Dow futures dropped 327 points (-0.66%) to 49,399. Nasdaq futures also fell 178.25 points (-0.69%) to 25,760. Weakness in technology stocks is expected. Russell 2000 futures, focused on small and mid-cap stocks, fell 3.20 points (-0.12%) to 2633.70. The VIX, a volatility index, rose over 10% to 15.96. This indicates that investor caution is expanding rapidly. The sentiment shifted sharply in just one day. Last week, major indices hit record highs following positive employment data. Anxiety is also reflected in the foreign exchange and bond markets. The Dollar Index, showing the value of the dollar against major currencies, fell 0.34% to 98.80. Conversely, the 10-year US Treasury yield rose slightly to 4.171%. Typically, rising rates lead to a stronger dollar. However, we are seeing a weaker dollar alongside rising rates. This suggests that confidence in US assets is shaking. A preference for safe assets is evident in the precious metals market. Gold prices rose 2.18% to $4,599, setting a new all-time high. Silver prices also surged 5.93% to $84.045. Analysis suggests that capital is moving to safe assets as Fed risk overlaps with geopolitical uncertainty. WTI crude oil prices fell 0.17% to $59.02 per barrel, showing relatively limited movement. The digital asset market is showing an overall weak trend. Bitcoin (BTC) fell 0.20% on a daily basis to $90,636.43. Ethereum (ETH) rose 0.15% to $3,113.82, showing a relatively steady flow. Among altcoins, XRP fell 2.52%. BNB dropped 1.31%. SOL rose 2.09%. TRX fell 0.32%, and DOGE dropped 3.17%. ADA also fell 2.45%, joining the weak trend. Not financial advice. DYOR. © 2026 Coincex. All Rights Reserved.