Stocks climbed above their session lows S&P 500 And Dow Jones Industrial Average It hit an all-time high after investors refused to accept the Justice Department’s decision to open a criminal investigation into Federal Reserve Chairman Jerome Powell.
S&P 500 closed 0.16% higher at 6,977.27, while Dow Jones Industrial Average It closed at 49,590.20, up 86.13 points or 0.17%. Both the indices touched new all-time highs intraday and closed at record levels. nasdaq composite was up 0.26% and closed at 23,733.90.
Major averages bounced back from their worst levels of the session, helping gains wal-mart And some technology stocks. The Dow was down nearly 500 points, and the S&P 500 was down 0.5% at a session low. With the S&P 500 and the 30-stock Dow, Russell 2000 Index Also reached a fresh all-time high.
Trump’s call to cap credit card rates at 10% for one year was also causing some indigestion in the market earlier in the week. Critics fear Trump’s plan to aid affordability will backfire and restrict lending, hurting consumers – as well as bank profitability. Bank shares were most affected on Monday city group Down about 3%. JP Morgan And Bank of America There was a discount of more than 1%. capital one Shares slipped 6%
“In some ways it doesn’t matter that much,” Rob Williams, chief investment strategist at Sage, told CNBC. Pointing to the upcoming release of the consumer price index for December on Tuesday, he added, “I think it’s some noise, and it’s not even pushing rates that far… The focus will be on the data.”
The S&P 500 is back in the green after starting the session lower. U.S. stocks were under pressure after Powell confirmed in an unusual live video statement Sunday evening that federal prosecutors have opened a criminal investigation related to his Senate Banking Committee testimony on the renovation of Fed office buildings. Powell said the investigation was another attempt by Trump to influence the central bank’s monetary policy and that he would not bow to pressure. His term as chairman ends in May.
The stock market largely ignored Trump’s efforts to pressure the Fed in 2025 as the central bank cut rates three times as inflation stabilized. But the Fed is expected to hold off on further cuts at its next meeting later this month as it waits to see what the inflation picture and the economy will look like in the new year. Trump has made clear that he wants the Fed to continue lowering rates.
“The impact of Chairman Powell coming under scrutiny is probably a long-term impact, meaning it’s not going to change interest rates in the near term; it’s not going to change inflation in the near term,” Jim Lebenthal, chief market strategist at Seriti Partners, told CNBC.
With “very good” earnings anticipated this week and the CPI possibly coming in “well below 3%,” not to mention an economy that is “growing rapidly,” Lebenthal said there are “a lot of good things” in the short term. That’s what keeps the broader market higher, he said, even if the investigation delivers bad news in the long term.
Lebenthal added, “Anybody on the Federal Open Market Committee understands that if they don’t do what the President wants, if they don’t lower rates, they could be fired the same way Lisa Cook has been fired, at least in theory, or they could be the subject of an investigation like Chairman Powell.” “For the new president and anyone on the board, they will be more inclined to lower interest rates. That will ultimately lead to inflation, and it will ultimately lead to higher long-term interest rates, but those effects won’t be felt until the end of the year at the earliest.”
gold futuresWhich is seen as a hedge against the Fed’s declining independence, jumped 2.5% and closed at a record $4,614.7. Investors fear that a politicized central bank will again be hesitant to ease rising inflation.
Walmart up 3% on enthusiasm ahead of its inclusion NASDAQ-100 Indexwhich is tracked by popular Invesco QQQ Trust ETF. The retailer gained in the consumer group, which could get an overall boost from Trump’s pressure to lower credit card rates as well as oil prices, ahead of the U.S. midterm elections later this year.
palantir Citi rose 1% on an upgrade, leading some tech shares. amd And Oracle were also high.
— CNBC’s Liz Napolitano contributed reporting