Investors look past Fed independence concerns ahead of CPI and bank earnings.
US equities closed higher on Monday, with the S&P 500 and Dow Jones Industrial Average both ending at fresh record highs, as investors looked through renewed concerns around Federal Reserve independence and refocused on upcoming inflation data and earnings.
The rally came despite confirmation that the Department of Justice has opened a criminal investigation involving Federal Reserve Chair Jerome Powell, a development that initially pressured markets earlier in the session. Major indexes rebounded from their intraday lows as investors judged the issue unlikely to impact near-term monetary policy.
The Dow was supported by gains in consumer and select technology stocks, including Walmart (WMT), while broader participation helped lift the Russell 2000 to a new all-time high. The Nasdaq 100 edged higher as megacap tech remained mixed.
Bank stocks lagged after President Trump floated a proposal to cap credit card interest rates at 10% for one year, raising concerns over profitability and lending activity. Citigroup (C), JPMorgan (JPM), and Bank of America (BAC) all declined on the session.
Looking ahead, investor attention is shifting toward December CPI data due Tuesday and a heavy slate of bank earnings, which will shape expectations for Federal Reserve policy and early-year market positioning.
📊 Market Wrap Jan 13th 2026
🧠 Analyst Notes
💬 Market Highlights
Trump Administration Nears Trade Deal with Taiwan, Benefiting TSM
The Trump Administration is reportedly close to finalizing a new trade agreement with Taiwan that includes a commitment from TSMC (TSM) to build five additional manufacturing facilities in Arizona.
Under the proposed deal, U.S. tariffs on Taiwanese goods would be reduced to 15% from the current 20%. The administration has also indicated that companies making significant investments in the U.S. could be excluded from Section 232 tariffs. TSMC shares moved higher following the report.
Meta to Cut 10% of VR Workforce as AI Becomes Strategic Priority
Meta (META) is reportedly planning to cut around 10% of its virtual reality workforce within its Reality Labs division as it reallocates resources toward artificial intelligence development.
The layoffs will not affect the company’s augmented reality business, which continues to see strong demand, particularly for its Ray-Ban smart glasses. Meta plans to invest up to $70 billion in AI, including infrastructure, high-performance chips, and talent, signaling a clear strategic shift away from the metaverse toward AI.
Palantir Upgraded by Citi as Commercial and Government Supercycle Looms
Citi (C) upgraded Palantir (PLTR) to Buy with a $235 price target, citing expectations of a supercycle in both commercial and government demand beginning in 2026.
The firm projects government segment revenue growth of 51% year-over-year, with potential upside driven by accelerating defense budgets and military modernization efforts. Increasing enterprise AI spending is also expected to drive further upward revisions to Palantir’s earnings outlook.
📅 Earnings Watch
Markets remain resilient as investors balance political noise against solid earnings expectations and upcoming inflation data. With CPI and major bank results approaching, short-term direction will hinge on whether fundamentals continue to outweigh policy uncertainty.
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