The S&P 500 and Dow closed at record highs, with shares of technology companies and retailer Walmart rising and as investors mostly brushed aside concerns about the U.S. Justice Department’s criminal investigation into Federal Reserve Chairman Jerome Powell.
Walmart shares rose 3%, boosting the S&P 500 and Nasdaq.
Walmart will join the Nasdaq-100 index on Jan. 20, a move that could attract billions of dollars from passive index funds.
Stocks opened lower following the Powell news.
The Justice Department’s impeachment threat, apparently centered on comments Powell made to Congress about a building renovation project, heightened concerns about the Fed’s independence.
Powell called the move a “pretext” to gain more influence over interest rates that President Donald Trump has pushed to slash sharply since taking office in January 2025.
“The news that Powell is being investigated by the Justice Department was basically telegraphed by Trump, and that’s why I think the market is taking it easy for now,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“The fact that former Fed governors have come out to support Powell… is also comforting for the markets,” he said.
Investors are also looking ahead to the fourth-quarter earnings season in the United States, Cardillo said.
Analysts predict the technology sector will lead S&P 500 earnings growth for the quarter, with a 26.5% year-over-year increase, according to LSEG data.
They forecast that S&P 500 companies’ total earnings for the quarter will increase 8.8% from a year ago.
The reporting period unofficially begins on Tuesday with results from JPMorgan Chase and other big banks.
The Dow Jones Industrial Average rose 0.17% to 49,590.20 points, the S&P 500 gained 0.16% to 6,977.27 and the Nasdaq Composite advanced 0.26% to 23,733.90 points.
Shares of lenders and credit card companies came under pressure after Trump called for a one-year cap on credit card interest rates of 10% starting Jan. 20.
With information from Reuters
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