At the close, the Dow Jones Industrial Average fell by 398.21 points, or 0.80%, to 49,191.99 points; the Nasdaq Composite Index dropped by 24.03 points, or 0.10%, to 23,709.87 points; and the S&P 500 Index declined by 13.56 points, or 0.19%, to 6,963.71 points.
According to Zhitong Finance, the three major indices fell slightly on Tuesday. Trump continued his relentless attacks on Federal Reserve Chairman Powell, calling him either incompetent or dishonest, and stating that he is not doing a good job.
The increase in the U.S. core consumer price index (CPI) for December was lower than expected, further bolstering market confidence that inflation is cooling as the Federal Reserve considers its next steps on interest rate policy. Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that the seasonally adjusted monthly core CPI rose by 0.2%, while the annual rate stood at 2.6%. Both figures were 0.1 percentage points lower than market expectations. Overall, both the monthly and annual CPI matched market forecasts. This report indicates to some extent that the pace of price increases is reverting toward the Federal Reserve's 2% target, though levels remain elevated. Among the components, housing costs—a key factor with strong inflation persistence—rose by 0.4% month-on-month, contributing the most to the monthly CPI increase. This category, which accounts for over one-third of the CPI, increased by 3.2% year-over-year.
[U.S. Stocks] At the close, the Dow Jones Industrial Average fell by 398.21 points, or 0.80%, to 49,191.99; the Nasdaq Composite Index dropped by 24.03 points, or 0.10%, to 23,709.87; and the S&P 500 Index declined by 13.56 points, or 0.19%, to 6,963.71. JPMorgan (JPM.US) closed down more than 4%, Intel (INTC.US) rose by 7.3%, and Google (GOOG.US) gained 1%. The Nasdaq China Golden Dragon Index fell by 1.86%, with iQIYI (IQ.US) dropping by 3% and RLX Technology (RLX.US) rising by 2%.
[European Stocks] The German DAX 30 Index rose by 32.66 points, or 0.13%, to 25,430.43; the UK FTSE 100 Index fell by 7.08 points, or 0.07%, to 10,133.62; the French CAC 40 Index dropped by 11.56 points, or 0.14%, to 8,347.20; the Euro Stoxx 50 Index increased by 14.16 points, or 0.24%, to 6,030.46; the Spanish IBEX 35 Index climbed by 10.46 points, or 0.06%, to 17,684.26; and the Italian FTSE MIB Index fell by 209.70 points, or 0.46%, to 45,522.50.
[Cryptocurrency] Bitcoin broke through the $95,000 mark, surging over 4.5% intraday; Ethereum rose more than 7%, reaching $3,332.95. Related stocks collectively advanced, with Strategy (MSTR.US) gaining over 6.6%, Coinbase (COIN.US) up by 4%, and Robinhood (HOOD.US) rising over 2.3%.
[U.S. Dollar Index] The U.S. dollar index, which measures the greenback against six major currencies, rose by 0.28% on the day, closing at 99.134 in the forex market. By the close of the New York forex market, 1 euro was exchanged for 1.1649 U.S. dollars, down from 1.1672 U.S. dollars the previous trading day; 1 pound was exchanged for 1.3435 U.S. dollars, lower than 1.3466 U.S. dollars the previous trading day. Meanwhile, 1 U.S. dollar was exchanged for 159.11 Japanese yen, higher than 158.14 yen the previous trading day; 1 U.S. dollar was exchanged for 0.8006 Swiss francs, up from 0.7970 Swiss francs; 1 U.S. dollar was exchanged for 1.3887 Canadian dollars, higher than 1.3871 Canadian dollars; and 1 U.S. dollar was exchanged for 9.2132 Swedish kronor, up from 9.1693 Swedish kronor.
[Precious Metals] Spot gold edged down by 0.22%, closing at $4,586.62 per ounce.
[Crude Oil] The price of light sweet crude oil futures for February delivery on the New York Mercantile Exchange rose by $1.65, settling at $61.15 per barrel, a gain of 2.77%; while the price of Brent crude oil futures for March delivery on the London exchange increased by $1.60, closing at $65.47 per barrel, representing a rise of 2.51%.
[Macroeconomic News]
Reports indicate that the U.S. government has applied to seize additional oil tankers involved with Venezuela. According to four sources, the U.S. government has filed applications with courts to seize dozens more tankers linked to Venezuelan oil trade. In recent weeks, the U.S. military and Coast Guard have detained five vessels in international waters, either transporting Venezuelan crude oil or previously involved in such activities. Trump imposed a blockade in December to prevent sanctioned tankers from shipping Venezuelan crude, nearly halting the country’s exports. This week, under U.S. supervision, related shipments resumed. Sources stated that the U.S. government has initiated multiple civil forfeiture lawsuits in regional courts to provide legal grounds for seizing and confiscating oil cargoes and vessels involved in such trade. The government has submitted dozens of seizure warrant applications.
Powell disclosed details of the Federal Reserve building project to lawmakers last year. According to a letter seen by the media, Federal Reserve Chair Powell sent a letter to several senators in July last year detailing the central bank’s $2.5 billion renovation project, complicating claims by the Trump administration that he misled Congress. The four-page letter was sent two and a half weeks after Powell testified before the Senate Banking Committee regarding cost overruns for the project. Powell is currently under criminal investigation by the Department of Justice for his testimony to the committee. Trump and several senior government officials accused Powell of misleading Congress on the scale and scope of the renovation. Jennifer Piro, the federal prosecutor for the District of Columbia overseeing the criminal investigation, stated that part of the reason her office issued a subpoena was to learn more about “the chairman’s testimony to Congress regarding the project.” She noted that her office had repeatedly requested relevant information but received “no response.” However, the letter shows that Powell provided extensive answers to questions raised by lawmakers.
A surge in tariff revenue drove the US 2025 deficit to a three-year low. Driven by a record jump in tariff revenue, the US natural year 2025 budget deficit narrowed to $1.67 trillion, the lowest level in three years. Data released by the US Treasury on Tuesday showed that the December monthly deficit was $145 billion, with a cumulative deficit of $602 billion in the first three months of fiscal year 2026 (which began on October 1 last year). Tariff revenue last month slowed to $28 billion, the lowest since July. Despite tariffs boosting fiscal revenue, Trump’s tax reform bill began to have the opposite effect. December data showed corporate income tax revenue fell to $65 billion, down 28% year-on-year. With the tax filing season starting this month, personal income tax refunds will also be distributed intensively. In the natural year 2025, tariff revenue reached $264 billion, an increase of approximately $185 billion from the previous year. However, this portion of revenue may soon be affected by the Supreme Court, which is preparing to rule on the legality of several of Trump's tariff measures.
US officials: The US may take concrete steps to acquire Greenland within months. A senior US official stated that the US might take specific steps to acquire Greenland within “weeks or months,” although completing any transaction would still take longer. Trump’s Arctic affairs commissioner and key advocate for the proposal, Thomas Dans, said the process could advance quickly but would still require gaining the trust and support of Greenland's population. Trump has said that the US needs Greenland for strategic and security reasons, especially to counter Russia. While he did not rule out the possibility of using military force, Dans believed an invasion was unlikely as the US already controls Greenland's security environment. Current preferred options include directly purchasing Greenland, seeking other diplomatic arrangements, or encouraging closer ties with the US after Greenland gains independence.
Fed’s Musalem: Inflation risks are easing; no need for further rate cuts at present. Fed’s Musalem stated that inflation risks are easing and he expects prices to begin returning to the Fed’s target later this year. Musalem noted that after last year’s rate cuts, the Fed’s monetary policy is well-positioned to address price stability or employment risks. He said that the current interest rate is close to a neutral level, neither stimulating nor restraining the economy, and reiterated that there is no need for further rate cuts while inflation remains relatively high. “I expect inflation to move closer to our 2% target this year. Today’s inflation data is encouraging in this regard,” Musalem said on Tuesday, “I believe the current policy stance is very appropriate, balancing economic expectations and addressing various risks.”
CME plans to launch a 100-ounce silver futures contract on February 9. CME announced on Tuesday plans to launch a 100-ounce silver futures contract on February 9, 2026, pending regulatory approval. Jin Hennig, Managing Director and Global Head of Metals at CME, stated: “Against the backdrop of rising geopolitical uncertainty and accelerating energy transition, silver is increasingly favored by retail traders looking to diversify across a broader range of metals. The introduction of the 100-ounce silver futures will enhance market accessibility, allowing more traders to benefit from the liquidity and efficiency provided by our futures markets.” JB Mackenzie, Vice President and General Manager of Futures and International Business at Robinhood Markets, noted: “This new futures contract introduced by CME provides clients with a way to participate in silver trading at a lower capital threshold, offering greater flexibility to traders.”
[Stock News]
Boeing surpasses Airbus in sales, ending seven-year slump. Boeing (BA.US) surpassed Airbus in jet aircraft sales in 2025, ending a seven-year downturn. The American aircraft manufacturer is gradually recovering from a series of tragedies and corporate crises. Boeing announced on Tuesday that it recorded total orders of 1,175 aircraft for the year, surpassing Airbus’ total sales of 1,000 aircraft announced the previous day. Boeing’s order tally includes the largest single order in the company’s history, unveiled during Trump’s visit to the Middle East in May—the Qatar Airways order. Boeing delivered a total of 600 aircraft last year, including 63 in December, the highest monthly delivery volume for the year. Although the annual delivery total lagged behind Airbus’ 793, this was still the best performance by the American manufacturer since 2018. With assistance from the White House, Boeing’s order volume continued to rise. Meanwhile, by accelerating production following a series of crises, the company’s financial position has strengthened. This wave of turbulence began in early 2019, when two fatal 737 Max crashes led global regulators to ground Boeing’s main profit source.
Meta reportedly plans to double Ray-Ban AI glasses production. According to informed sources, Meta Platforms (META.US) and EssilorLuxottica are discussing doubling the production capacity of AI smart glasses by the end of the year to gain a competitive edge. Sources indicated that with steady growth in Ray-Ban Meta glasses sales, Meta has proposed increasing annual production capacity to 20 million units or more by the end of 2026. These partners are also discussing the possibility of further raising capacity to over 30 million units if demand supports it, though sources cautioned that no final decision has been made yet.
