U.S. Dow Jones Futures Fall Sharply as Fed Chair Jerome Powell Faces Criminal Investigation; JPMorgan, Goldman Sachs, Delta and Taiwan Semiconductor in Focus Ahead of Earnings

U.S. stock futures, including the Dow Jones Industrial Average futures, slid sharply on Monday following news that federal prosecutors have launched a criminal investigation into Federal Reserve Chair Jerome Powell.

The unexpected legal development intensified market volatility, weighed on financial stocks, and overshadowed a key earnings week featuring major companies including JPMorgan Chase & Co. (JPM), Goldman Sachs (GS), Delta Air Lines (DAL) and Taiwan Semiconductor Manufacturing Company (TSM).

Dow Futures and Market Reaction

Dow Jones futures dropped alongside broader U.S. equity futures in early trading, reflecting increased investor risk aversion amid heightened policy uncertainty. Powell’s situation — tied to subpoenas and a criminal probe regarding renovations at the Federal Reserve’s Washington, D.C. headquarters and his testimony to Congress — has added pressure to already cautious markets.

Jerome Powell Under Investigation

The U.S. Department of Justice is reportedly investigating whether Powell misled Congress about the scope and cost overruns of a multibillion-dollar overhaul of the Federal Reserve’s buildings. Powell has publicly confirmed the probe, described it as politically motivated, and stressed the importance of central bank independence.

Powell stated the investigation was linked to disagreements over monetary policy and pressure from the Trump administration regarding interest rate cuts, and reiterated his commitment to setting policy based on economic conditions rather than political preference.

Market Implications and Sector Moves

The legal uncertainty contributed to a decline in bank and financial stocks, with major lenders experiencing pre-market pressure as traders weighed political and regulatory risk. At the same time, markets are bracing for high-profile earnings reports this week from large cap names across key sectors:

• JPMorgan Chase & Co. (JPM) — The largest U.S. bank by assets, expected to report earnings that could provide insights into credit and trading environments.

• Goldman Sachs (GS) — Wall Street investment bank navigating market volatility and client activity data.

• Delta Air Lines (DAL) — A major U.S. airline whose results will reflect travel demand resilience.

• Taiwan Semiconductor Manufacturing (TSM) — Leading global chip producer in focus amid tech sector performance metrics.

Investors are watching whether these earnings reports can offset broader macroeconomic concerns, including geopolitical tensions and policy risk stemming from the Powell investigation.

Outlook

As markets grapple with the legal and political ramifications of the Powell case, analysts caution that monetary policy risk and central bank independence could remain key drivers of volatility in the near term. Corporate earnings will be closely analyzed for indications of economic resilience and sector-specific growth.

Sources & References

• Investors.com — Dow Jones Futures Fall With Fed Chief Powell Under Criminal Probe; JPMorgan, Goldman, Delta, Taiwan Semi Ahead
  https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-fed-chief-powell-criminal-probe-jpmorgan-goldman-delta-taiwan-semi/

• CNN Brasil — EUA: Procuradores abrem investigação criminal contra o Fed e Jerome Powell
  https://www.cnnbrasil.com.br/economia/macroeconomia/eua-procuradores-abrem-investigacao-criminal-contra-fed-e-powell/

• CNN Brasil — Powell diz ser investigado por não ceder ao governo Trump sobre juros
  https://www.cnnbrasil.com.br/economia/macroeconomia/powell-diz-ser-investigado-por-nao-ceder-ao-governo-trump-sobre-juros/

• InfoMoney — Futuros de Wall Street caem após Justiça dos EUA abrir investigação contra Powell
  https://www.infomoney.com.br/mercados/futuros-de-wall-street-caem-apos-justica-dos-eua-abrir-investigacao-contra-powell/

• Investors.com — Banks & Financial Stocks News and Analysis
  https://www.investors.com/news/banks-and-financial-stocks-news-and-analysis-bofa-wellsfargo-jpmorgan-goldmansachs/

• Investors.com — Chip Stocks and Semiconductor Industry News
  https://www.investors.com/news/technology/chip-stocks-and-semiconductor-industry-news-intel-qualcomm-qorvo/

• The Guardian — US prosecutors launch criminal investigation into Fed chair Jerome Powell
  https://www.theguardian.com/business/live/2026/jan/12/us-prosecutors-criminal-investigation-federal-reserve-chair-jerome-powell-dollar-stock-market-gold-bitcoin-business-live-news-updates