January 12, 2026

Markets:

Stock futures fell Monday after the Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell, an apparent escalation by President Donald Trump in his attempt to pressure the central bank.

Trump’s call to cap credit card rates for one year at 10% was also causing some market indigestion to start the week. Critics fear Trump’s plan to aid affordability would backfire and restrict lending, hurting consumers — along with bank profitability.

Bank stocks led the losses in early trading with Citigroup down 4% in the premarket. JPMorgan and Bank of America were off by more than 2%. Capital One shares plunged 11% in early trading.

Powell confirmed in an unusual direct video statement Sunday evening that federal prosecutors have opened a criminal investigation related to his Senate Banking Committee testimony on the renovation of Fed office buildings.

Traders are preparing for the kickoff of earnings season, with major Wall Street banks set to report results in the days ahead. JPMorgan Chase, Bank of America, Morgan Stanley and Goldman Sachs are all scheduled to release quarterly numbers, offering investors fresh insight into the health of consumer spending, dealmaking activity and trading revenues.

Portfolio:

A new trading week is here, and major opportunities are taking shape. We’re starting the week positioned with setups in IRE and SERV.

Earnings season is about to kick off, and this is one of the most powerful windows of the year—especially for gaining deeper clarity around the Tech and AI theme. Everything else is secondary. The headline noise, including the back-and-forth between President Trump and the Fed, is just that: noise. The outcome is predictable.

Early in the week, patience is key. Let the charts develop and stay focused while the media throws distractions around. Volatility driven by headlines can be an advantage if you’re prepared.