US stocks closed at fresh record highs on Monday as investors moved past concerns about escalating tensions between President Donald Trump and the Fed.
The S&P 500 rose 0.2% to a new all-time closing high, while the Dow Jones Industrial Average recovered from early losses to gain 0.2% and set its own record. The Nasdaq Composite added 0.3%, supported by strength in technology and retail shares.
Walmart jumped 3% after confirmation that its stock will join the Nasdaq 100 index later this month. Shares of Alphabet climbed 1%, pushing the company’s market value above $4 trillion, helped by continued enthusiasm around its artificial intelligence products.
Earlier jitters followed comments from Fed Chair Jerome Powell, who said the Justice Department had threatened criminal charges over testimony related to renovations at the Fed’s headquarters. Powell described the move as an attempt to pressure the central bank over interest rate decisions. Markets ultimately treated the development as political noise rather than a policy threat.
Financial stocks lagged after Trump renewed calls for a one-year cap on credit card interest rates at 10%, pressuring lenders and card issuers. Shares of Capital One, American Express, and Synchrony Financial all fell sharply.
Safe haven assets reflected lingering caution. Gold surged 2.5% to a record settlement above $4,600 an ounce, while the US dollar weakened against major currencies. Treasury yields briefly climbed before easing back.
Despite political uncertainty, analysts said investors remain focused on strong earnings expectations and the belief that the Fed will retain its independence. Markets now turn to upcoming inflation data and the start of fourth-quarter earnings season for further direction.
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