NEW YORK, New York - U.S. stock markets were more restrained on Monday following Sunday night's revelation that the Federal Reserve Chair Jerome Powell is facing a criminal investigation over cost overruns on extensions at the Federal Reserve building. "This is lawfare at its worst," former Dallas Fed president Richard Fisher told CNN on Monday. "I find it hard to believe they would stoop to this level. This is a step too far."

Many former Fed officials including past Federal Reserve chairs, and U.S. Treasury secretaries spoke out against the move Monday. "This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success," Ben Bernanke, Alan Greenspan, Janet Yellen and Henry Paulson said in a joint statement on Mobday.

"Attempting to criminalize the conduct of monetary policy is an outrage," University of Michigan economics professor Justin Wolfers told CNN. "Every American should oppose this. Bad economics. Bad politics. Bad for the rule of law. Bad for markets."

The U.S. dollar dived, and gold rose to a record high. The Roaring 20s stock market boom however continued on, albeit in more sober circumstances Monday following the Powell news breaker.

The Standard and Poor's 500 added 10.99 points, or 0.16 percent, to finish at 6,977.27. The benchmark index traded between an intraday low of 6,934.07 and a high of 6,986.33, with turnover of about 3.01 billion shares.

The Dow Jones Industrial Average rose 86.13 points, or 0.17 percent, to close at 49,590.20. During the session, the blue-chip index moved between 49,011.31 and an intraday high of 49,633.35, with volume of roughly 508.5 million shares.

Technology stocks helped lift the Nasdaq Composite, which advanced 62.56 points, or 0.26 percent, to end the day at 23,733.90, as investor appetite for growth stocks remained firm.

U.S. dollar takes a hit after Trump opens criminal probe into Fed chair

President Trump undermined FX markets Monday, and kept a lid on stock gains after it was revealed the U.S. Department of Justice has opened a criminal investigation into Fed Chair Jerome Powell.

The euro strengthened against the greenback, with EUR/USD rising 0.33 percent to trade at 1.1671, reflecting. The British pound also advanced, climbing 0.50 percent to 1.3466.

In the Asia-Pacific region, the Australian dollar posted solid gains, with AUD/USD up 0.43 percent at 0.6713. The New Zealand dollar outperformed many of its peers, rising 0.73 percent to 0.5767 against the U.S. dollar.

The dollar however was firmer against the Japanese yen, with USD/JPY edging up 0.14 percent to 158.140, as yield differentials continued to favour the greenback. However, the dollar weakened against other safe-haven currencies. USD/CHF fell 0.47 percent to 0.7969, signalling strength in the Swiss franc.

Against the Canadian dollar, the greenback also eased, with USD/CAD slipping 0.28 percent to 1.3871, amid steady commodity-linked currency support.

Majority of stock markets around the world finish higher Monday

Global share markets closed mostly higher on Monday, with good gains across Canada, Europe and the Asia-Pacific region, while a handful of markets finished modestly lower.

In Canada, the S&P/TSX Composite Index climbed 261.77 points, or 0.80 percent, to close at 32,874.70, supported by strength in resource and financial stocks, with trading volume of approximately 283.6 million shares.

In London, the FTSE 100 edged up 16.10 points, or 0.16 percent, to close at 10,140.70. The index traded between an intraday low of 10,089.93 and a high of 10,149.71.

European markets finished mixed but largely positive. Germany's DAX rose 143.70 points, or 0.57 percent, to end the session at 25,405.34, after moving between 25,236.88 and 25,421.42. France's CAC 40 slipped slightly, falling 3.33 points, or 0.04 percent, to 8,358.76, despite touching a session high of 8,378.09. The EURO STOXX 50 gained 18.83 points, or 0.31 percent, closing at 6,016.30, while the Euronext 100 added 1.64 points, or 0.09 percent, to finish at 1,779.95. Belgium's BEL 20 was an underperformer, dropping 26.50 points, or 0.51 percent, to 5,213.94.

Asian markets posted strong gains. In Hong Kong, the Hang Seng Index surged 376.69 points, or 1.44 percent, to close at 26,608.48. Singapore's STI Index rose 22.12 points, or 0.47 percent, to 4,766.78. Japan's Nikkei 225 climbed sharply, advancing 822.59 points, or 1.61 percent, to end at 51,939.89. South Korea's KOSPI gained 38.47 points, or 0.84 percent, closing at 4,624.79, while Taiwan's TWSE Capitalization Weighted Index jumped 278.33 points, or 0.92 percent, to 30,567.29.

Mainland China's SSE Composite Index rose 44.86 points, or 1.09 percent, to close at 4,165.29. Indonesia's IDX Composite moved in the opposite direction, falling 52.03 points, or 0.58 percent, to 8,884.72. Malaysia's FTSE Bursa Malaysia KLCI gained 8.90 points, or 0.53 percent, to 1,695.44, while New Zealand's S&P/NZX 50 Gross Index dipped 12.96 points, or 0.09 percent, to 13,683.29.

Markets in Australia finished higher, with the S&P/ASX 200 adding 41.60 points, or 0.48 percent, to close at 8,759.40. The broader All Ordinaries rose 46.80 points, or 0.52 percent, to 9,092.70.

In emerging markets, India's S&P BSE Sensex advanced 301.93 points, or 0.36 percent, ending the day at 83,878.17. Israel's TA-125 gained 19.12 points, or 0.49 percent, to close at 3,926.38. Egypt's EGX 30 Price Return Index climbed 508.80 points, or 1.19 percent, to 43,404.20. South Africa's Top 40 USD Net TRI Index recorded a strong rise of 186.73 points, or 2.60 percent, finishing at 7,373.51.

Overall, Monday's session reflected broad investor confidence across most regions, with technology-heavy and export-oriented markets leading gains, while a small number of European and Asia-Pacific indices ended marginally lower.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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