Wall Street Climbs to Fresh Records as Walmart and Tech Lead the Rally

BY COMFORT OGBONNA

The S&P 500 and the Dow Jones Industrial Average closed at fresh all-time highs on Monday, driven largely by gains in heavyweight technology companies and an impressive rally from Walmart. Investors showed a remarkable ability to look past political turmoil in Washington, particularly the Justice Department’s criminal investigation of Federal Reserve Chair Jerome Powell, which many feared might rattle financial markets.

Walmart was among the day’s standout performers. Shares in the retail giant surged 3%, lifting both the S&P 500 and the Nasdaq Composite. Walmart’s growing influence within major stock indexes has only intensified interest. The company recently shifted its primary listing from the New York Stock Exchange to the Nasdaq, and on January 20, it is scheduled to formally join the prestigious Nasdaq-100 index—a move likely to funnel billions of dollars into the stock as passive funds realign their holdings to match the benchmark.

Despite a cautious start to the trading session, Wall Street sentiment steadied. Early losses were triggered by headline concerns that Powell may face indictment tied to remarks he made about a Federal Reserve building renovation project during congressional testimony.

The White House under President Donald Trump has frequently clashed with Powell, accusing the central bank of slowing the administration’s economic ambitions. Powell swiftly dismissed the allegations as politically motivated and claimed they were merely a pretext to apply pressure on the Fed’s interest rate policies. Trump has repeatedly urged aggressive rate cuts since entering office in January 2025, often framing the central bank as an obstacle to strong economic growth.

Market watchers noted that traders were not blindsided by the probe. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said the investigation was widely anticipated after Trump’s recent statements and therefore did little to unsettle professionals on Wall Street. Cardillo remarked that strong public support for Powell from former Federal Reserve officials helped quell fears that the central bank’s independence was at risk, which would normally be seen as a significant source of volatility for markets.

Investors are now turning their focus to the fourth-quarter earnings season, which begins in force on Tuesday when major financial institutions including JPMorgan Chase release results. Analysts expect technology companies to post the strongest earnings growth across the S&P 500, forecasting a 26.5% year-over-year increase. Broader S&P 500 earnings are projected to rise 8.8% from a year earlier, driven by steady consumer demand and resilient corporate margins.

By the closing bell, the Dow gained 86.13 points, or 0.17%, finishing at 49,590.20. The S&P 500 climbed 10.99 points, or 0.16%, ending the day at 6,977.27, while the Nasdaq advanced 62.56 points, up 0.26%, to close at 23,733.90.

However, not all sectors participated in the rally. Financial stocks slumped sharply after Trump called for a temporary nationwide cap on credit card interest rates at 10%, effective January 20.

The proposal sent shockwaves through the lending industry, sparking heavy selling across banks and credit card issuers. Financials dropped 0.8% overall, making them the worst-performing sector of the day. Citigroup slid 3%, American Express fell 4.3%, and Capital One suffered a steep 6.4% decline. Companies tied to consumer lending also struggled, with buy-now-pay-later firm Affirm losing 6.6%.

Beyond earnings season, traders are bracing for another critical data point: the U.S. consumer price index report due Tuesday morning. Inflation readings remain central to expectations about future monetary policy, with markets betting that the Fed could implement at least two additional quarter-percentage-point rate cuts before the end of the year.

Market participation remained robust, with total volume on U.S. exchanges topping 17.29 billion shares, above the recent 20-day average of 16.40 billion. Winners outpaced losers in both major trading venues. On the New York Stock Exchange, advancing stocks outnumbered decliners by nearly 1.7 to 1, while new highs surged to 725 against only 48 new lows. The Nasdaq also leaned positive, with more than 2,600 stocks gaining and 2,144 declining, producing an advance-to-decline ratio of roughly 1.22 to 1.

Overall, the day reflected a striking balance between political noise and market optimism. Even as tensions rise between the White House and the Federal Reserve, investors appear steadfast in their belief that underlying corporate strength led by powerhouse technology firms and consumer giants like Walmart remains a dominant and stabilizing force on Wall Street.