Political Turmoil Rattles Tech-Heavy Index

The Nasdaq 100 futures market opened the week under significant strain, shedding approximately 1.0% in pre-market trading. This sharp decline was triggered by an extraordinary development from the U.S. capital: the Department of Justice has initiated a criminal investigation targeting Federal Reserve Chairman Jerome Powell. As investors pivot toward safety and offload technology holdings, a critical concern emerges regarding the potential threat to the central bank's cherished policy independence.

Market futures dropped sharply in response to a video statement released by Powell. He confirmed receiving subpoenas from a grand jury, officially related to renovation work on Federal Reserve buildings. Chairman Powell characterized the move as a pretext by the Trump administration to exert political pressure for lower interest rates.

The sudden uncertainty surrounding the leadership of the world's most influential central bank prompted an immediate flight from risk-sensitive assets, particularly those tied to the "Sell-America" trade:
* Government Bonds: The yield on the benchmark 10-year U.S. Treasury note climbed to 4.20%, applying pressure to the valuations of growth-oriented equities.
* Gold: The traditional safe-haven asset surged to a fresh record high, surpassing $4,600 per troy ounce.

Walmart Bucks the Broader Sell-Off

Amid a widespread tech sector retreat, shares of Walmart posted notable gains. The retail giant's stock advanced over 2% in pre-market activity to around $117. This strength follows the official confirmation that Walmart will join the Nasdaq 100 index on January 20, replacing AstraZeneca. Analysts at Jefferies estimate this change could drive roughly $19 billion in inflows from passive funds tracking the index. Conversely, AstraZeneca shares traded weaker as fund managers adjusted positions ahead of its removal.

Should investors sell immediately? Or is it worth buying NASDAQ 100?

Other sectors displayed less resilience. Coinbase faced pressure following a price target reduction to $440 by Bernstein and reports of continued outflows from Bitcoin ETFs. The semiconductor segment also struggled with the risk-averse sentiment; Nvidia traded slightly lower despite receiving positive analyst commentary.

Key Technical Levels Under Scrutiny

From a chart perspective, the Nasdaq 100 failed to sustain a breakout above the 25,830-point resistance level and is now undergoing a pronounced correction. Traders are closely monitoring the support zone near 25,600 points. A breach of this level could precipitate a test of the 50-day moving average. According to the Relative Strength Index (RSI), short-term momentum has clearly deteriorated.

Market volatility is expected to remain elevated throughout the trading session. Beyond the political headlines, investor attention is already shifting toward tomorrow's U.S. Consumer Price Index (CPI) data. An inflation reading exceeding the forecasted 2.8%, combined with the legal challenges facing the Fed's leadership, has the potential to fuel further market turbulence.