What the End of the DOJ Investigation Means for the Next Fed Chair

Key takeaways

The DOJ's investigation into Jerome Powell was concluded to clear the way for Kevin Warsh's Fed Chair confirmation, but uncertainties remain.
US diplomatic efforts toward Iran continue cautiously, with a focus on potential negotiations without immediate direct talks.
Defense companies face a complex environment: rising demand amid market and political challenges, with investor wariness about the industry's ability to meet long-term needs.
Stock markets are buoyed by strong tech earnings, especially Intel, and ongoing developments in AI indicating robust innovation and investment.
The Las Vegas Sphere's success highlights the potential of immersive entertainment tech, with plans to replicate this model internationally.

Summary

The DOJ Investigation and Its Impact on the Federal Reserve Leadership

The Justice Department has decided to end its criminal probe into Fed Chair Jerome Powell regarding cost overruns in Fed building renovations. The investigation was seen as a potential obstacle for President Trump's choice for Fed Chair, Kevin Warsh. Political dynamics played a role, with the decision influenced by the need to confirm Warsh's appointment. Although the probe's closure might seem definitive, some officials indicated it could restart if new facts emerged, leaving some uncertainty about its finality.

US Diplomacy in the Middle East and Iran's Engagements

The US is actively involved in diplomatic efforts concerning Iran, with Iranian Foreign Minister visiting Islamabad and the White House sending envoys including Jared Kushner for discussions. While Iran currently does not plan direct talks with US representatives, US officials express willingness to pursue diplomacy, indicating a cautious but open approach to resolving tensions.

Defense Industry and War-Related Market Dynamics

Despite increased demand for weapons due to ongoing conflicts, notably with Iran, defense stocks like RTX, Northrop Grumman, and Lockheed Martin have fallen, reflecting investor concerns. Factors include high manufacturing costs, a strained weapons stockpile, and political pushback on large military budgets. The industry faces challenges in meeting demand efficiently while managing financial pressures.

Market Highlights and Technology Developments in AI and Semiconductors

The stock market saw gains, with the NASDAQ closing at a record high driven by Intel's surge, its first since 2000, following strong earnings and an optimistic outlook. Other AI and tech developments include a successful IPO for X Energy, major investments by Alphabet in Anthropic, and the release of new AI models by Chinese startup Deep-seek, signaling continued innovation and investor interest in AI.

Entertainment and Innovation with the Las Vegas Sphere

Despite initial skepticism due to its high costs and safety concerns, the Las Vegas Sphere has become the world's highest-grossing arena, thanks to its immersive technology. The company behind the Sphere plans to expand by building similar venues in Abu Dhabi and near Washington, DC, hoping to leverage this innovative entertainment format globally.

Show notes

P.M. Edition for April 24. The Justice Department will end its probe into Federal Reserve Chair Jerome Powell. WSJ chief economics correspondent Nick Timiraos discusses what that means for President Trump’s Fed chair nominee Kevin Warsh. Plus, weapons makers have seen war boost their sales, but their stocks have taken a hit. We hear from Drew FitzGerald, who covers defense for the Journal, about why investors are wary. And, after a rocky start, the Las Vegas Sphere is now the highest-grossing arena in the world. Entertainment reporter Katherine Sayre tells us why we might be seeing more Spheres around the world. Alex Ossola hosts.

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