S&P 500, Dow Clinch New Peaks as Traders Shrug Off Fed Independence Concerns

04:41 PM EST, 01/12/2026 (MT Newswires) -- The S&P 500 and the Dow Jones Industrial Average notched fresh highs on Monday as traders appeared to brush off concerns around Federal Reserve independence.

The two indexes rose 0.2% each to 6,977.3 and 49,590.2, respectively, recording their second consecutive record finish. The Nasdaq Composite climbed 0.3% to 23,733.9.

Barring financials and energy, all sectors ended higher, led by consumer staples.

On Sunday, Fed Chair Jerome Powell said federal prosecutors served the central bank with grand jury subpoenas threatening a criminal indictment linked to his earlier testimony regarding office building renovation. Powell suggested the probe reflected continued efforts by the Trump administration to influence monetary policy.

"Such a threat is concerning, but the administration's chances of controlling Fed policy seem low," Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said in a report e-mailed to MT Newswires.

US President Donald Trump has repeatedly called on the Fed to lower interest rates, while criticizing Powell. Powell's term as Fed chair is set to end in May.

US Treasury yields were higher, with the 10-year rate up 1.6 basis points at 4.19% and the two-year rates rising 1.3 basis points to 3.55%.

Gold futures were last up 2.3% at $4,603.20, per troy ounce, while silver jumped 7.2% to $85.09 per ounce. Both touched new intraday peaks earlier in the session.

In company news, Walmart (WMT) shares rose 3%, the top gainer on the Dow. The retail giant is set to join the Nasdaq 100 index prior to market open Jan. 20, replacing AstraZeneca (AZN) , Nasdaq said late Friday. AstraZeneca's (AZN) US-listed shares fell 1.1%.

Sun Country Airlines (SNCY) shares surged nearly 11%, while Allegiant Travel (ALGT) slumped 6.3%. The companies said Sunday that Allegiant agreed to acquire Sun Country in a cash-and-stock deal that values the latter at about $1.5 billion.

Some credit card issuers may see their revenue slashed by more than half as a result of a 10% interest rate cap floated by Trump last week, RBC Capital Markets said Monday in a client note.

RBC sees the proposal as a temporary headwind for credit card companies, with Synchrony Financial (SYF) and Bread Financial (BFH) seen as the "most exposed." The brokerage said it sees Capital One (COF) as "modestly" exposed and American Express (AXP) as "slightly" exposed.

Synchrony Financial (SYF) shares tumbled 8.4%, the worst performer on the S&P 500. Capital One sank 6.4%, while American Express (AXP) lost 4.3%, both among the steepest declines on the index.

JPMorgan Chase (JPM) , Bank of America (BAC) and Citigroup (C) are scheduled to release their latest quarterly results later this week, along with other major lenders such as Wells Fargo (WFC) , Morgan Stanley (MS) , Goldman Sachs (GS) and Bank of New York Mellon (BK) .

"This week's calendar brings the formal start of US earnings season, with major banks due to report early, potentially offering insight into credit conditions, net interest income, and guidance for 2026," Saxo Bank said in a Monday report.

West Texas Intermediate crude oil was last up 0.6% at $59.45 a barrel.

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