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

Coincex The New York markets are preparing to open under tension. Reports of a criminal investigation into the Federal Reserve Chairman are circulating. Concerns regarding the erosion of Fed independence are resurfacing. Risk aversion is spreading, and capital is moving toward safe-haven assets. On the 12th, the market is focused on a specific variable. Fed Chairman Jerome Powell is reportedly a target of a DOJ criminal investigation. The inquiry relates to his congressional testimony regarding headquarters renovations. There is a growing perception that the political independence of benchmark rate policy is under test. This sentiment is affecting equity, foreign exchange, and bond markets. Chairman Powell argues this investigation results from the Fed setting rates based on public interest rather than presidential preference. President Trump has stated that the investigation is unrelated to pressure on rate policy. However, the market remains concerned. There is a risk that the Fed's policy process could become entangled in political controversy. Investors view this situation as extending beyond Powell personally. It may place a burden on the future selection of the Fed Chair. It also impacts overall confidence in US monetary policy. The bank earnings season, beginning this week, is encouraging a wait-and-see approach among investors. Additionally, President Trump mentioned capping credit card interest rates at 10% for one year. This highlights policy risks for financial stocks. With Fed uncertainty overlapping with regulatory issues, we expect increased volatility at the market open. At 8:05 AM Eastern Time on the 12th, major stock index futures are showing a decline. S&P 500 futures are at 6970.25, down 34.75 points (-0.50%). Dow futures fell 327 points (-0.66%) to 49,399. Nasdaq futures dropped 178.25 points (-0.69%) to 25,760. This suggests a weakness centered on technology stocks. Russell 2000 futures, focused on small and mid-cap stocks, also fell 3.20 points (-0.12%) to 2633.70. The VIX volatility index rose over 10% to 15.96. This indicates that investor caution is rapidly expanding. The sentiment has shifted sharply in just one day. Last week, major indices hit record highs following positive employment data. Anxiety is also reflected in foreign exchange and bond markets. The Dollar Index, showing the dollar's value 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 dollar weakness alongside rising rates. This suggests that confidence in US assets is shaking. The preference for safe assets is prominent in the precious metals market. Gold prices rose 2.18% to $4,599, setting a new record high. Silver prices also surged 5.93% to $84.045. Analysis suggests capital is flocking to safe assets as Fed risks overlap with geopolitical uncertainty. West Texas Intermediate (WTI) crude oil 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, indicating a relatively steady flow. Among altcoins, XRP fell 2.52%. BNB declined 1.31%. Solana (SOL) rose 2.09%. Tron (TRX) fell 0.32%, and Dogecoin (DOGE) dropped 3.17%. Cardano (ADA) also fell 2.45%, joining the downward trend. Not financial advice. DYOR. © 2026 Coincex. All Rights Reserved.