Market Performance - US stocks opened positively in 2026, with the Nasdaq Composite leading gains by over 1%, while the Dow Jones Industrial Average and S&P 500 increased by more than 0.2% and 0.5% respectively [1] - The S&P 500 rose over 16% in 2025, and the Nasdaq Composite saw a more than 20% increase [2] Economic Outlook - The outlook for 2026 is optimistic, with all Wall Street forecasters predicting a stock rally for a fourth consecutive year [3] - However, potential risks include a possible falter in the AI boom, unexpected changes in the US economy, and uncertainties surrounding President Trump's tariff policies [3] Commodity Market - Gold and silver prices advanced at the start of 2026, building on their best annual performances since 1979, while aluminum prices surpassed $3,000 per ton for the first time since 2022 [3] Federal Reserve - The Federal Reserve is expected to maintain its current interest rates, although there are mixed expectations for the March meeting, with divisions within the central bank likely to persist [4] - President Trump is anticipated to appoint a new chair to replace Jerome Powell this month [4]

Core Viewpoint - President Trump has launched a renewed attack on Federal Reserve Chair Jerome Powell, accusing him of incompetence and threatening legal action over the costly renovation of the Fed's headquarters [1][6]. Group 1: Criticism of Jerome Powell - Trump labeled Powell a "fool" during a press conference, emphasizing that Powell's term as chair will expire in May [2]. - The president criticized Powell's management of the Fed's renovation project, claiming it is over budget and poorly executed, contrasting it with his own projects [3][7]. - Trump has previously expressed a desire to fire Powell, alleging mental issues and incompetence, although he lacks the authority to do so without cause [15][16]. Group 2: Renovation Project Details - The renovation project was initially estimated to cost $1.9 billion in 2019, but the cost has risen to nearly $2.5 billion by 2025 due to increased material costs and remediation needs [10]. - Trump claimed the renovation could exceed $4 billion, citing it as the highest construction cost per square foot in history, although the source of this figure is unclear [7][12]. - Powell noted that Trump's cited figure included costs from a previously completed renovation, indicating a misunderstanding of the current project's financials [12]. Group 3: Federal Reserve Independence - World leaders have issued warnings regarding the independence of the Federal Reserve in light of Trump's criticisms and threats [8]. - Powell has stated he intends to complete his term and that any attempt to remove him before its conclusion would not be legally permissible [17].

President Donald Trump displays signed funding legislation to reopen the US government, on Nov. 12. Treasuries sustained small losses as the longest government shutdown on record ended and expectations for another Federal Reserve interest-rate cut next month eroded further. Most Read from Bloomberg Yields were higher by as much as three basis points, led by tenors more sensitive to changes in Fed policy. The odds of a December rate cut assigned by the market have slipped amid cautious commentary by sever ...