Daily Market Recap (January 12th 2025)

In early 2026, global financial markets are navigating extreme volatility fueled by a direct confrontation between the Trump administration and Federal Reserve Chair Jerome Powell. International central banks have issued an unprecedented statement of solidarity to defend the Fed’s autonomy following a controversial criminal probe into its leadership. Meanwhile, the U.S. has intensified its "maximum pressure" campaign by enacting 25% tariffs on any nation trading with Iran, while simultaneously securing 50 million barrels of oil from a newly established interim government in Venezuela. Despite these geopolitical shifts, Japanese stocks reached historic peaks, and major corporations like Boeing and JPMorgan Chase reported significant dealmaking and earnings activity. Investors remain focused on upcoming inflation data as a primary indicator for future interest rate trajectories amidst this climate of institutional and political tension.