After opening lower, US stocks rebounded to a record high
US stocks rebounded on Monday (January 12th) after opening lower, and then closed higher—with the S&P 500 and Dow Jones Industrial Average setting new closing records. The main driver came from strengthening technology stocks and a surge in Walmart, while the market appeared to shrug off initial concerns about political pressure on the Federal Reserve.
Latest closes:
The S&P 500 index rose 0.15% to 6,977.29 (a record close), the Dow Jones Industrial Average rose 0.16% to 49,584.57 (a record close), and the Nasdaq Composite index rose 0.26% to 23,733.90.
Previously, the indexes were under pressure after news of a Department of Justice (DOJ) criminal investigation into Fed Chairman Jerome Powell sparked concerns about the central bank's independence. Powell viewed the threat of indictment as a "pretext" to reduce interest rate policy—an issue that had sent the market into a risk-off mood earlier in the session.
On the other hand, the financial sector became a major drag after President Donald Trump called for a 10% cap on credit card interest rates for one year, a policy that depressed bank and credit card company stocks.
Nevertheless, market sentiment remained relatively calm as investors began to shift their focus to the fourth-quarter earnings season (starting with major banks) and the release of US CPI data, which could potentially determine the direction of expectations for the next interest rate cut.
Source: newsmaker.id
