Powell DOJ subpoena knocks the US dollar and injects policy risk into markets today. For Hong Kong investors, the S&P 500 index ^GSPC is near record territory as traders price a January hold and a first Fed cut by June. The inquiry into Chair Jerome Powell’s testimony on a US$2.5 billion headquarters renovation raises fresh questions about Fed independence. With the US dollar index softer, attention turns to Tuesday’s December CPI and a pending Supreme Court tariff ruling. Both are the next catalysts for rates, equities, and HKD-USD positioning.

S&P 500 Snapshot and Technical Levels

At 6977.26, the S&P 500 index is up 10.98 points (+0.16%) today. It opened 6944.12, dipped to 6934.07, and hit 6986.33, a new year high. The prior close was 6966.28. The 50-day average sits at 6818.21, while the 200-day is 6323.20. Volume is 3.03 billion versus a 5.10 billion average.

RSI is 57.52, showing moderate strength. MACD (31.73) is above its signal (28.95) with a 2.78 histogram. Stochastic %K is 86.97, near overbought. ADX at 12.18 signals no strong trend. ATR is 59.05. Price is near Bollinger upper 6980.35 and Keltner upper 6988.14. MFI is 66.73, and OBV stays elevated.

Powell Subpoena and Fed Independence Risk

Markets are reacting to a Powell DOJ subpoena tied to his congressional testimony on a US$2.5 billion Fed headquarters renovation. The news knocked the dollar and highlighted policy uncertainty. Early coverage points to fresh scrutiny of governance and communications at the central bank. See reporting at Yahoo Finance HK.

Investors still expect a January hold and a first cut by June. Any perceived political pressure raises Fed independence risk, which can lift term premium, widen credit spreads, and weigh on equities. The White House says President Trump did not order a probe, aiming to limit confusion, per RTHK. The Powell DOJ subpoena keeps policy path uncertainty in focus for risk assets.

Dollar, Inflation Print, and Legal Catalysts

The US dollar index weakened after the Powell DOJ subpoena. A softer dollar often supports US equities and global risk sentiment. For Hong Kong, the HKD peg limits currency swings, but translation of USD assets and import costs still matter. If dollar softness persists, cyclicals and exporters may see relative support.

Tuesday’s December CPI is the next key print. Watch core services, shelter, and the supercore for continued cooling. A pending Supreme Court tariff ruling could also shift import prices and inflation. Together, these catalysts may change rate-cut odds, move Treasury yields, and rotate leadership within the S&P 500.

Actionable Playbook for HK Investors

For HK investors, maintain core US exposure but avoid chasing breakouts near highs. Consider staggered entries. Hold some HKD cash for pullbacks. If you carry USD liabilities, simple USDHKD forwards can smooth timing. Avoid leverage until CPI lands, and size positions to withstand roughly two ATR, about 118 index points.

Upside resistance sits around 6980.35 to 6988.14. First support is 6934.07, then 6866.40 (Bollinger mid), 6818.21 (50-day), and the 6752.45 to 6751.95 lower bands. A hot December CPI could test supports; a cool print may clear resistance. Place stops just below your chosen support to protect capital in fast markets.

Final Thoughts

Today’s softer dollar, sparked by the Powell DOJ subpoena, keeps attention on Fed independence risk while the S&P 500 hovers near highs. For Hong Kong investors, the setup is balanced: breadth is firm, momentum is constructive, but ADX shows no dominant trend. Use the 6980 to 6988 zone as near-term resistance and the 6866 to 6818 area as key supports. Into Tuesday’s December CPI, favor staggered entries, moderate position sizes, and simple USDHKD hedges if needed. If inflation cools, a breakout is possible; if it runs hot, protect gains and look for buys near listed supports. Keep an eye on the tariff ruling, which could alter the inflation path and rate-cut timing.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.