Asia-Pacific markets rose Monday following Wall Street gains from last week after a U.S. job report showed that unemployment rate fell, signalling resilience in the labour market. Investors will be keeping an eye on oil prices as Iran entered a third week of protests, which have seen more than 500 people killed, according to a U.S.-based rights group. President Donald Trump is reportedly weighing options for intervention in Iran, according to multiple reports Sunday. Brent crude futures reversed course to fall to $63.05 per barrel, while the U.S. West Texas Intermediate crude declined 0.49% to $58.83 per barrel, as of 10 a.m. Singapore time (9 p.m. ET Sunday).
The S&P 500 rose to new highs on Friday, notching a weekly gain, following the release of the latest jobs report. The broad market index closed up 0.65% to 6,966.28, a fresh record close. It also notched a new all-time intraday high in the session. The Nasdaq Composite gained 0.81% to 23,671.35. The Dow Jones Industrial Average added 237.96 points, or 0.48%, to end at 49,504.07, scoring a new closing record as well. The three major averages posted a winning week. The S&P 500 was up more than 1% week to date, while the Dow and Nasdaq jumped 2.3% and 1.9%, respectively.
Gold prices rose more than 1% to above $4,600 per ounce on Monday, reaching a record high on heightened geopolitical risks and concerns over the Federal Reserve's independence. Iran’s parliament speaker on Sunday warned the US and Israel against any intervention after President Trump threatened strikes amid widespread protests in Iran that have reportedly killed hundreds of people. Meanwhile, Fed Chair Jerome Powell revealed that he was threatened with criminal charges over his testimony before the Senate last June, criticizing the move as part of Trump's pressure campaign on the bank to lower rates. Additional support came from expectations of more US interest rate cuts after Friday’s data showed December job growth slowed more than forecast. Markets are now focused on this week’s US inflation report for further clues on the Fed's rate path.
WTI crude futures traded around $59 per barrel on Monday after the largest two-day rally since October, as escalating protests in Iran raised concerns over potential supply disruptions. The unrest has entered its third week and has reportedly resulted in hundreds of deaths, with authorities signalling a tougher crackdown. US President Donald Trump warned Tehran against targeting demonstrators and is reportedly weighing military options against Iran, while Tehran cautioned the US and Israel against any intervention. Iran exports nearly 2 million barrels per day and ranks as OPEC’s fourth largest producer, making any escalation a material risk to global supply. Meanwhile, uncertainty over Venezuela’s crude shipments persisted as shifts in US policy and sanctions continued to cloud the outlook for its oil flows.
Federal prosecutors are conducting a criminal investigation of Federal Reserve Chairman Jerome Powell focused on the $2.5 billion renovation to the central bank’s headquarters in Washington, D.C., and his related testimony to Congress, he said on Sunday evening. Powell said the probe is the result of longstanding frustration by President Donald Trump over the Fed’s refusal to cut interest rates as quickly and as much as the president has demanded. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a video statement tweeted by the Fed’s X account. The chairman warned that the outcome of the investigation will determine the future of the central bank’s decisions.
Japan’s ruling Liberal Democratic Party is planning to dissolve the country’s Lower House later this month and opt for a snap election likely in February, according to public broadcaster NHK. This comes as reports over the weekend from Japanese media said that the LDP was looking to capitalize on Prime Minister Sanae Takaichi’s high approval ratings to stabilize the ruling coalition. NHK said Japan’s Ministry of Internal Affairs and Communications had instructed the election board in each prefecture to prepare for possible general elections. Takaichi’s approval ratings are at a historic 75%, according to a Nikkei survey, marking the third straight month of ratings above 70%.
U.S. Treasury Secretary Scott Bessent has told Reuters that additional U.S. sanctions on Venezuela could be lifted as soon as next week to facilitate oil sales, and that he will also meet next week with the heads of the International Monetary Fund and World Bank on their re-engagement with Venezuela. Bessent said in an interview late on Friday that almost $5 billion worth of Venezuela’s currently frozen IMF Special Drawing Rights monetary assets could be deployed to help rebuild the country’s economy. “We’re de-sanctioning the oil that’s going to be sold,” Bessent said during a visit to a Winnebago Industries engineering facility. The Treasury was examining changes that would facilitate the repatriation of sale proceeds of the oil stored largely on ships back to Venezuela. “How can we help that get back into Venezuela, to run the government, run the security services and get it to the Venezuelan people?” he said of the Treasury’s sanctions analysis.
Qatar and the United Arab Emirates will soon join a U.S.-led initiative to secure AI and semiconductor supply chains, Undersecretary of State for Economic Affairs Jacob Helberg told Reuters in an interview. The addition of those two countries is notable given the Middle East’s history of political divisions and reflects a U.S.-led effort to bring Israel and Gulf states into the same technology-focused economic framework. The program, dubbed Pax Silica, seeks to safeguard the full technology supply chain, including critical minerals, advanced manufacturing, computing and data infrastructure. It is a key pillar of the Trump administration’s economic statecraft strategy to reduce dependence on rival nations and strengthen cooperation among allied partners. “The Silicon Declaration isn’t just a diplomatic communiqué,” Helberg said.
U.S. employment growth slowed more than expected in December amid job losses in the construction, retail and manufacturing sectors, but a decline in the unemployment rate to 4.4% suggested the labor market was not rapidly deteriorating. The Labor Department’s closely watched employment report on Friday also showed solid wage growth last month, bolstering economists’ expectations the Federal Reserve would leave interest rates unchanged at its January 27-28 meeting. Economists have blamed sluggish job growth on President Donald Trump’s aggressive trade and immigration policies, which they say have reduced both demand for and supply of workers. Businesses are also holding back on hiring, unsure of their staffing needs as they invest heavily in artificial intelligence.
Walmart and Google said Sunday that shoppers will soon be able to use Google’s artificial intelligence assistant Gemini to more easily discover and buy products from the retail giant and its warehouse club, Sam’s Club. Incoming Walmart CEO John Furner and Google CEO Sundar Pichai announced that the companies have teamed up on stage at the National Retail Federation’s Big Show, an annual industry conference held at New York City’s Javits Center. The CEOs did not say when the new feature will launch or share financial terms. The company said the experience will start first in the U.S. and then expand internationally. Walmart also has its own AI chatbot, a yellow smiley-faced assistant on its app called Sparky.
General Motors said on Thursday it would take a $6 billion charge to unwind some electric-vehicle investments, the latest car company to pull back from EVs in response to the Trump administration’s policies and fading demand. The charge stems from reducing its planned EV production and the fallout on the supply chain, GM said in a regulatory filing, and comes weeks after rival Ford Motor announced a similar but much bigger charge. Most of GM’s writedown - a $4.2 billion cash charge - is related to contract cancellations and settlements with suppliers, who had planned for much higher production volumes before the market turned. GM said the writedown would not affect its U.S. lineup of roughly a dozen EV models, which is the industry’s broadest offering of battery-powered vehicles. “We plan to continue to make these models available to consumers,” it said in its filing.
Chrysler parent Stellantis said on Friday it will stop selling plug-in hybrid versions of the Jeep Wrangler and Grand Cherokee, and the Chrysler Pacifica minivan, in the United States as it navigates soft demand and shifts its North American electrification strategy. "Stellantis will phase out plug-in hybrid programs in North America beginning with the 2026 model year, and focus on more competitive electrified solutions, including hybrid and range-extended vehicles," the company said. The automaker’s pullback comes as Detroit carmakers reassess electric-vehicle spending amid policy changes under President Trump. Stellantis previously leaned on plug-in hybrids to help meet federal fuel-economy requirements, given a lineup that included many V8-powered models. Traditional hybrids that do not require charging have also proven to be more popular among shoppers in the U.S. than their plug-in counterparts.