U.S. stock markets rallied to fresh record highs on Monday, seemingly unfazed by the unprecedented criminal investigation into Federal Reserve Chair Jerome Powell and escalating geopolitical tensions with Iran. The S&P 500 and Dow Jones Industrial Average both closed at all-time highs, underscoring a market focus on near-term economic strength and earnings over institutional turmoil.

The investigation into Powell, which he labeled a politically motivated attack, drew sharp bipartisan condemnation. A statement signed by former Fed chairs and senior officials from both parties called it "an unprecedented attempt to use prosecutorial attacks to undermine [Fed] independence." Former Goldman Sachs CEO Lloyd Blankfein described it as "an attempt at murder-suicide" of U.S. institutions. Despite the gravity of the situation, market strategist Jim Lebenthal noted investors are currently focused on "too many good things," like a healthy economy and strong corporate profits.

Iran Tariffs Threaten to Upend Trade Truce
Adding to the complex backdrop, President Trump announced a 25% tariff on any country doing business with Iran. While not explicitly naming China, the policy directly targets Beijing, Iran's largest trading partner. Analysts warn this could rupture the fragile U.S.-China trade truce and trigger retaliatory measures, introducing a new layer of uncertainty for global markets.

Other significant developments include a massive rally in Venezuelan stocks, with the benchmark index soaring over 130% since the U.S. operation earlier this month, reflecting optimism for economic stabilization. In tech, Apple confirmed a multiyear partnership with Google to use its Gemini AI models to power a smarter Siri. Meanwhile, European defense stocks are surging as investors bet on a sustained "war economy" spending boom across the continent.

Hedge Funds Post Best Year Since 2009
In a sign of the year's robust market activity, the global hedge fund industry recorded its best annual return since the financial crisis, gaining 12.6% in 2025. The performance was driven by strong gains in equity long-short and macro strategies, both of which returned over 17% for the year, according to Hedge Fund Research.