Wall Street News Breakfast FM-Radio | January 13, 2026

Huajian Morning Voice

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Market Overview

The U.S. Department of Justice investigates Federal Reserve Chairman Powell. At Monday's U.S. market open, stocks, bonds, and the dollar plunged simultaneously, while gold, silver, and cryptocurrencies rose. The market quickly absorbed the news, and U.S. stocks and bonds rebounded from the day's lows.

The S&P 500 erased intraday losses and closed at a record high. Small-cap stocks performed well. Trump called on credit card companies to cap interest rates at 10%, Capital One fell nearly 8%, American Express fell over 4%. Google's market cap surpassed $4 trillion, and the company confirmed a multi-year AI technology partnership with Apple.

Chinese concept stocks index surged 4.3%, Alibaba rose over 10%. The RMB hit its highest level since May 2023.

U.S. Treasury yields closed higher, but far below early session highs, with the 10-year yield up just 1 basis point. The independence of the Fed was challenged, the dollar ended its gains, at one point falling nearly 0.6% from the day’s high.

Bitcoin's daily volatility approached 2.6%, with a slight rise from the previous day's close.

Risk aversion, combined with a weak dollar, sent precious metal prices soaring. Spot gold rose nearly 2%, at one point breaking through $4,600. Silver futures surged 7.6%. The market watched developments in Iran, and WTI crude rose 1.8%.

During the Asian session, A-share trading volume hit a new high, the Shanghai Composite achieved 17 straight days of gains, AI applications and commercial space sectors boomed, Zhipu soared 30% in Hong Kong, and Shanghai silver rose over 14%.

Headlines

Can China and Russia only buy Venezuelan crude under U.S. supervision? Foreign Ministry spokeswoman Mao Ning said Latin American countries are sovereign and have the right to choose partners autonomously. Whatever the situation, China will continue to deepen practical cooperation with Latin American countries, including Venezuela, and promote common development.

The Powell probe triggers infighting. FHFA Director is accused of being the key pusher; Bessent warns of "creating chaos"; The White House says Trump did not order action. Powell is indicted, key Republican lawmakers oppose: "I will vote no, Trump can't nominate a new Fed Chair!" Fed chair candidate Hassett: respects independence but questions Fed overspending; the economy did not flourish thanks to the Fed. All living former Fed chairs and several former Treasury Secretaries issue a joint statement condemning the criminal investigation into Powell.

Trump: 25% tariffs on Iranian trade partners, oil prices rise briefly. Iranian Speaker says an attack will bring the U.S. an "eternal unforgettable lesson." White House: diplomacy is the first choice in handling the Iran situation.

Trump escalates call to the Supreme Court: If the tariff ruling is unfavorable, America can't afford the consequences.

Republicans push "stock ban": strictly prohibit members of Congress from buying individual stocks, severely punish insider trading.

Apple chooses Gemini to power this year’s AI Siri, Google’s market cap breaks $4 trillion for the first time.

Meta appoints AI “steward”: former Trump adviser as president; Zuckerberg assembles executive team to lead data center investment.

"Orders are just too full!" Memory packaging and testing quotes surge 30%, manufacturers plan a second round of price hikes.

Catching up to SpaceX, Europe, Canada, and Japan ramp up efforts, even India is getting active. “Prototype of future space tourism,” first flight succeeds, China’s commercial aerospace completes its first 100km suborbital parachute recovery test. India’s satellite launch fails.

Market Close Recap

US and European Stocks: S&P 500 rose 0.16%, closing at 6977.27. Dow rose 0.17%, closing at 49590.20. Nasdaq rose 0.26%, closing at 23733.904. Europe’s STOXX 600 index rose 0.21%, closing at 610.95, a record high.

A-shares: Shanghai Composite closed at 4165.29, up 1.09%. Shenzhen Component closed at 14366.91, up 1.75%. ChiNext index closed at 3388.34, up 1.82%.

Bond Market: US 10-year Treasury yield rose 2.17 basis points to 4.1870%. Two-year Treasury yield rose 0.85 basis points to 3.5406%.

Commodities: COMEX gold futures rose 2.28% to $4,603.30/oz. COMEX silver futures rose 6.95% to $84.855/oz. WTI February crude futures rose $0.38, up 0.64%, to $59.50/barrel.

News Details

Global Highlights

Can China and Russia only buy Venezuelan crude under U.S. control? China's response. According to Global Times, Foreign Ministry spokeswoman Mao Ning said, Latin American countries are sovereign and have the right to choose partners independently; whatever may change, China will continue pragmatic cooperation and promote joint development with Latin American countries including Venezuela.

U.S. Department of Justice launches “criminal investigation” into Fed Chair Powell, Powell says “it's because the Fed won't listen”. The DOJ launched a criminal investigation into Powell focusing on $2.5 billion HQ renovation overruns and whether he lied to Congress. Approved by Trump allies, coincides with Powell's term ending in May and Trump's pick of successor. Powell said this is the result of the Fed not following presidential preferences; he will continue in his confirmed Senate role.

Powell probe sparks infighting? FHFA Director accused as chief instigator, Bessent warns “creating chaos,” White House says Trump did not instruct investigation. Media says Bessent urgently called Trump, conveying distress over the probe and warning of market disturbance and Powell not leaving early. FHFA Director Pulte cited as key instigator, denies involvement in DOJ actions. Media says Trump learned after Powell was subpoenaed, and prosecutors would not proceed without his support. White House says Trump denied ordering the probe but stressed his right to criticize the Fed.

Powell indicted, key Republican Senator flips: I will vote no, Trump can’t nominate a new Fed Chair! Republican Senator Thom Tillis stated he would oppose any Trump Fed nominee, including for the upcoming Chair vacancy, until the DOJ probe is fully resolved. Tillis oversees the Justice Committee and could lead to a stalemate over any nomination.

Fed Chair candidate Hassett: respects independence but questions Fed overspending; economy not prospering thanks to the Fed. Hassett said he was not involved in the DOJ probe, doesn't know if Trump approved it. He stresses independent central bank/justice system but also criticizes Fed policy for dragging growth and its HQ cost overruns.

All living former Fed chairs, multiple ex-Treasury Secretaries sign joint letter condemning criminal investigation of Powell. Three former Fed chairs and four former Treasury Secretaries strongly condemn the DOJ’s investigation, warning it erodes the Fed’s independence, with the joint statement also signed by former White House economic advisers. Yellen said the probe is “deeply chilling” for Powell’s successor and the market.

Trump: 25% tariff on Iranian trade partners, oil prices rise short term. Trump posted on social media that any country trading with Iran will face 25% U.S. tariff, effective immediately.

Iran’s Speaker warns: An attack will teach U.S. an “eternal unforgettable lesson”; White House: diplomacy is first choice. Iran’s Speaker in Tehran said any attack would teach the U.S. a permanent lesson. Iran’s Foreign Minister indicated readiness to negotiate with U.S. based on mutual respect but is also prepared for war. White House said diplomacy is preferred; meanwhile, Axios says Trump leans toward attacking Iran but hasn't decided.

Trump escalates warnings to Supreme Court: Unfavorable tariff ruling means U.S. can’t afford the cost. Trump again voiced concerns over the Supreme Court's tariff ruling, saying if it goes against the U.S., the nation would face hundreds of billions in payouts, not including reimbursement for investments to avoid tariffs; "it would be chaos," and America couldn't pay — "we’re finished!"

U.S. Republicans push “stock ban”: strictly prohibit lawmakers from buying individual stocks, harshly punish insider trading. The House GOP is pushing legislation to fully prohibit members of Congress and their close relatives from buying individual stocks; backed widely, entering committee review soon.

Apple chooses Gemini for AI Siri this year, Google market cap breaks $4 trillion. Apple and Google reached a multi-year partnership for Gemini and cloud technology to support Apple’s base models. Apple says “Google’s tech offers the strongest foundation.” Google opened up 1.7% after initially falling, Apple reversed a 1% dip to gain.

Meta appoints AI “steward”: former Trump advisor as president, Zuckerberg organizes executive team to lead data center investment. Powell McCormick, called one of Wall Street’s top female execs, will focus on Meta’s government and sovereign entity cooperation on AI. Santosh Janardhan and Daniel Gross will lead the Meta Compute group. Trump says appointing McCormick is “an excellent choice.”

Micron exec explains: Why huge investments; memory shortage hard to fix before 2028? Micron VP says AI data center demand now accounts for 50%-60% of DRAM market, radically altering supply-demand. Despite big investment, new lines face bottlenecks in complexity and specs; stable supply will take years. Memory tightness may last till 2028.

“Orders are just too full!” Memory packaging/testing quotes surge 30%, makers plan a second price hike. The chip price surge extends to packaging/testing. Companies like Powertech, Huatong, and Nanya bump prices 30%, consider further hikes. Key drivers: Samsung, SK Hynix racing to expand HBM capacity, squeezing standard DRAM/NAND, with cloud and industrial demand rebounding; orders are backlogged at packaging/testing firms.

Racing to catch SpaceX, Europe, Canada, Japan step up; even India is active. European Space Agency approved a record $22 billion three-year budget, with ≈$900 million toward five upstart launchers. Canada committed nearly $183 million over three years to improve domestic launch capacity. Japan earmarked ¥150 billion in its 2025 budget for a “Japanese Starlink.”

“Prototype of future space tourism”: First flight succeeds. China’s commercial space performed its first 100km suborbital parachute test, using a recoverable payload cabin similar in shape to a scale model of a return capsule, capable of carrying experiments for a short trip and returning them to Earth; it's a prototype for future space tourism.

India’s satellite launch fails! PSLV rocket fails two launches in a row. India’s main PSLV rocket failed again due to third-stage malfunction, 16 payloads including military hyperspectral EOS-N1 lost; second consecutive failure since May 2025.

Selected Research Reports

U.S. Supreme Court delays tariff ruling, market watching seven key issues. BofA notes if tariffs are overturned, U.S. stocks may rise, but government could use alternatives like Section 122 to offset revenue. Tariff real rate is only 11.2%, lower than expected. Regardless of outcome, investors should beware sharp tariff structure changes across sectors.

U.S. Q4 earnings season begins, Goldman: S&P 500 profit outlook “too conservative,” bank stocks key this week. Goldman says consensus estimates for S&P 500 Q4 EPS growth are 7% yoy, but the bar may be too low, as every quarter since Q1 2023 has beaten consensus. Bank earnings this week will be market’s weather vane, with JPMorgan reporting Tuesday.

Goldman outlook for 2026 Greater China tech: ASIC drives AI server growth, optical modules toward 1.6T, Apple supply chain leads smartphones. Key trends: AI infrastructure, form factor innovation, semiconductor localization. ASIC servers and folding iPhones will drive AI server (modules, cooling), high-end phone supply chain, and semiconductor equipment/material growth. Sector will polarize; traditional PC faces pressure, most opportunity lies with leaders' tech edge and demand-supply mismatches.

The sharpest weapon of this bull market: resources, led by precious metals. Guolian Minsheng says the capital market favors resources because: (1) all other major asset classes have their own worries; (2) resources enjoy triple-cycle resonance—short-term liquidity improvement and easing expectations, mid-term incremental demand and weak dollar cycle, long-term geopolitical tension raising the stakes for resource supply, with continuous supply-side shocks.

The “old-teng” vs “young-teng” battle within tech. Huachuang strategists say, the real issue is incremental money seeking valuation elasticity between consensus and non-consensus growth. “Old-teng” themes like PCB, CPO held heavily by funds now entering the phase of earnings digestion and valuation; “young-teng” topics like commercial space, brain-computer interfaces draw hot money. The spring rally is halfway but not overheated, with fundamentals supported.

Domestic Macro

Minister of Industry and IT Li Lecheng: Push breakthroughs in future manufacturing, information, materials. Li Lecheng said focus will be on “layout” for future industries, strengthening advanced planning and strategic deployment, speeding up mechanisms for growing future industry investment and risk sharing, to drive breakthroughs in future manufacturing, information, materials. Focus on quantum tech, humanoid robots, brain-computer interface, deep-sea/polar, 6G, etc., with targeted R&D, product development, company incubation, and ecosystem building.

Export tax rebate policy adjustment for PV and battery products: impact? CITIC Securities says the move aims to reduce trade friction, promote industry upgrade, and prevent “internal competition becoming external”. Estimated impact: $2.2B/$6.6B reduction in tax rebate for 2026/2027 exports. Short-term: transition period allows pricing adjustments or could trigger export rush; long-term: benefits top firms with overseas footprints, boosting global competitiveness and profitability.

A-shares up 16 days straight, why isn’t Hong Kong rising? The strong performance in A-shares at the start of the year isn't due to macro shifts, but rather initial-year fund allocation chasing scarce assets (like commercial aerospace, metals, even brain-computer interfaces); Hong Kong (dividends, internet, new consumption, innovative drugs) lacks highlights, capital is temporarily weak (with high U.S. rates, weak southbound funds, accelerated IPOs).

Domestic Companies

Hangzhou “Six Little Dragons” accelerate capitalization; report: Strong Brain Tech secretly submits Hong Kong IPO. Strong Brain Tech, one of Hangzhou’s “Six Little Dragons”, has quietly filed for a Hong Kong IPO. The brain-computer interface unicorn recently raised about 2 billion RMB, second globally only to Neuralink. Founded by Han Bicheng in 2015, Strong Brain focuses on non-invasive tech, building signal channels between the brain and external devices.

Quant fund Huansquare made 57% last year, ranks second among $10B funds! Huansquare posted a 56.6% return in 2025, ranking second among China's billion-dollar quant funds, driven by a successful switch to pure long strategy in 2024. Estimated revenue over $700 million, providing capital for founder Melvin Liang to incubate AI firm DeepSeek.

New “Yi Zhong Tian” emerges! Revolutionized “AI Era Advertising Logic”: GEO. AI applications surged, Yidian Tianxia, Zhongwen Online, Tianlong Group formed a new “Yi Zhong Tian” trio, hitting 20cm price limit. Advertising logic rewritten: AI search makes “clicks” obsolete, GEO (Generative Engine Optimization) accelerates. The core is to make content easier for models to retrieve/trust: structured data, specific info, authoritative sources, matching RAG-based search/generation. The future contest is not over “ranking”, but “being cited by AI”.

Brain-machine Haihe Lab: Completes world's first “space brain-computer interface experiment”. China has seen good progress in non-invasive brain-computer interface technology and applications, achieving parity or leadership. Tianjin University developed a 4-DOF 12-command brain-controlled drone and the world’s first in-orbit brain-computer interface system for the space station, used for the “Tiangong-2” and “Shenzhou-11” tasks in 2016.

Global Macro

Economists warn in joint letter: If “digital euro” fails, eurozone will “lose currency control”, depend on U.S. firms. 60+ economists sent a letter to the European Parliament warning that failing to push digital euro will risk loss of monetary sovereignty and greater dependence on Visa/Mastercard. 13 eurozone countries lack local digital payment and face geopolitical risk.

Venezuela’s changes a “big headache” for OPEC, could let U.S. control “30% of global reserves”. Analysis: Reviving Venezuela’s oil industry needs vast investment/time, but even modest short-term output increases and bigger long-term rises could upset supply-demand, suppress prices. JPMorgan estimates Guyana, Venezuela, and U.S. reserves combined could give the U.S. control of about 30% global reserves.

ExxonMobil CEO bluntly says Venezuela is “uninvestable”; Trump snaps back: Don’t come! The U.S. government is courting western oil majors, trying to attract at least $100 billion of investment to revive Venezuela’s battered oil sector. Despite White House lobbying, global giants remain skeptical without solid guarantees.

Global Companies

Much-watched “AI business model”: Google first to introduce ads in Gemini. Advertisers can offer exclusive deals to users via Google AI shopping agents; Google also launches “Universal Commerce Protocol,” allowing agents to research/buy products in-platform, developed alongside Walmart, Target, Shopify, and other major retailers.

Key battleground! After OpenAI and Anthropic, Apple forays into “healthcare”. Apple will revamp “Health” in iOS 26.4, adding AI agents, meal tracking, and video services, taking on incumbents like MyFitnessPal and Noom. Previously, OpenAI launched ChatGPT Health as a personal super-assistant for medical records; Anthropic rolled out HIPAA-compliant medical AI tools.

Industries/Concepts

1. Large Language Models | Per National Business Daily, Jan 12: Zhipu and Didi announced strategic cooperation, exploring AI key tech and agent applications for mobility.

Comment: Analysts believe this is the first major tie-up between a top LLM vendor and a digital mobility giant, marking substantive industrialization of agent use in travel. The collaboration showcases model deployment in complex mobility, talent/standards, and is a replicable template for AGI adoption in real-world industry. Globally, AGI tech adoption is accelerating, firms are all investing; Zhipu/Didi’s partnership not only advances China’s travel sector but sets a global reference.

2. Controlled Nuclear Fusion | Jan 16, 2026 Fusion Energy Technology & Industry Conference in Hefei, Anhui. Agenda: held in CRAFT fusion facility, includes upstream/downstream company expo, innovation gallery opening, and main conference with officials, scientists, research institutes, all industry nodes, and financiers, to plan growth and speed up industry financial/tech ties.

Comment: CITIC Securities says fusion is the ultimate energy, with huge long-term upside, and global/China short-term catalysts arriving. Mainly event-driven, capex progressing domestically, overseas may outperform. IEA estimates fusion global market >$100 billion by 2030.

3. BeiDou Navigation | Recently, Zhejiang’s “15th Five-Year Plan” for digital economy and infrastructure solicits public comment. It mentions following 4th-gen BeiDou planning, optimizing local network layout, upgrading base stations, and integration with satellite comms, BeiDou, and ground mobile; supporting high-precision service platform, 2D/3D spatial data, and city/town/village coverage.

Comment: Research groups say intensifying policy promotes scaled BeiDou use: China Spatial Group launched, pilot cities for BeiDou, explicit support for consumer use by 2025, target 2026 for sectoral adoption rates, top-down value release. BeiDou enables scale in many fields: low-altitude economy, 95% airborne terminal coverage for UAV logistics/tourism; consumer: 98% smartphones support, lane-level navigation on 99% roads, short message for 30M+ users, growing industrial scale.

4. IT in Finance | Since end-2025, A-shares kept rising, trading active; Jan 12 turnover hit ¥3.6T for second day above ¥3T, up ¥478.7B from previous day, breaking 2024 Oct 8 record. With recovery, two-way margin market heated up: in 2025, new margin accounts reached 1.5421M, highest in a decade, up 52% YoY; total accounts at 15.64M, a leap from 2024. By end-2025, total financing rose from ¥1.85T to ¥2.52T, up 36%, investor enthusiasm strong.

Comment: Analysts say A-share rebound and record volumes directly benefit financial IT firms. Higher market activity lifts software user base, paid conversions, ARPU; on the institutional side, broker/bank performance improves with volume, likely driving IT spend. Policy keeps easing liquidity, plus AI/tech tailwinds: financial IT enjoys not just short-term heat, but long-term digital upgrade opportunities. With “volume/price up + policy floor + tech upgrade,” financial IT remains highly elastic and dynamic.

Today's Key Events Preview

Canadian Prime Minister visits China Jan 13-17.

U.S. December CPI.

U.S. December government budget.

U.S. October new home sales.

Richmond Fed Chair Barkin, St. Louis Fed Chair Mussalem speak.

Guangzhou Futures Exchange: platinum/palladium contract price limit adjusted to 16%.

Gigadevice Hong Kong IPO.

JPMorgan earnings.

EIA Short-Term Energy Outlook.

Risk warning and disclaimerThe market carries risk; investments require caution. This article does not constitute personal investment advice, nor does it consider individual users’ specific investment goals, financial situation, or needs. Users should consider whether any opinion, viewpoint, or conclusion here is suitable for their own situation. Investing based on this is at your own risk.