S&P 500 and Dow Close at Record Highs as Walmart and Tech Stocks Rise

The S&P 500 and the Dow Jones Industrial Average closed at record highs on Monday, supported by gains in technology stocks and shares of retailer Walmart. Investors largely brushed aside concerns surrounding a criminal investigation by the U.S. Justice Department into Federal Reserve Chair Jerome Powell.

Walmart shares rose 3%, providing a boost to both the S&P 500 and the Nasdaq Composite, where the retailer moved its stock listing last month after departing the New York Stock Exchange. Consumer staples gained 1.4% to lead advancing sectors, while technology stocks also moved higher.

Walmart is scheduled to join the Nasdaq-100 index on January 20, a change that could attract billions of dollars in inflows from passive index-tracking funds.

Stocks opened lower earlier in the session following developments related to Powell. The Justice Department’s potential indictment, centered on Powell’s congressional testimony regarding a building renovation project, renewed concerns about the independence of the Federal Reserve.

Powell has described the investigation as a “pretext” aimed at exerting greater influence over interest rate policy, which President Donald Trump has pushed to be cut sharply since taking office in January 2025.

“The news that Powell is being investigated by the Justice Department was effectively signaled in advance, so markets appear to be taking it in stride for now,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“The fact that former Federal Reserve officials publicly voiced support for Powell has also been reassuring for investors,” he added. Cardillo noted that market participants are also turning their attention to the upcoming fourth-quarter U.S. earnings season.

Analysts expect the technology sector to lead earnings growth within the S&P 500 for the quarter, with year-over-year gains estimated at 26.5%. Overall earnings for S&P 500 companies are projected to rise 8.8% compared with the same period a year earlier. The reporting season is set to begin unofficially on Tuesday with results from major U.S. banks, including JPMorgan Chase.

At the close, the Dow Jones Industrial Average advanced 86.13 points, or 0.17%, to 49,590.20. The S&P 500 rose 10.99 points, or 0.16%, to 6,977.27, while the Nasdaq Composite gained 62.56 points, or 0.26%, to 23,733.90.

Shares of banks and credit card companies came under pressure after President Trump called for a one-year cap on credit card interest rates at 10%, starting January 20.

The financial sector declined 0.8% and was the worst-performing sector within the S&P 500.

Citigroup shares fell 3%, while credit card issuer American Express dropped 4.3%. Consumer finance companies also declined, including Capital One, which ended the session down 6.4%.

Buy-now, pay-later firm Affirm Holdings slid 6.6%.

Investors are also awaiting Tuesday’s release of the U.S. consumer price index report, which could influence expectations for future Federal Reserve rate cuts. Markets are currently pricing in at least two additional quarter-point rate cuts before the end of the year.

Trading volume on U.S. exchanges totaled 17.29 billion shares, compared with an average of 16.40 billion shares over the previous 20 trading sessions. Advancing stocks outnumbered declining ones on the New York Stock Exchange by a ratio of 1.68 to 1, with 725 stocks reaching new highs and 48 posting new lows.

On the Nasdaq, 2,613 stocks advanced while 2,144 declined, resulting in an advancing-to-declining ratio of 1.22 to 1.