S&P 500 Breaks Records Amid Powell’s Row, Credit Rate Shock

Wall Street Climbs Despite Powell Probe: The S&P 500 surged to a fresh all-time intraday high, defying early-session losses and political turbulence. Investors brushed aside news that federal prosecutors had opened a criminal investigation into Federal Reserve Chair Jerome Powell, focusing instead on upcoming economic data and corporate earnings. The index rose 0.2%, while the Nasdaq gained 0.4% and the Dow added 39 points after recovering from a nearly 500-point plunge earlier in the day.

Trump’s Credit Card Rate Cap Rattles Banks

Markets also digested President Trump’s call to cap credit card interest rates at 10% for one year. While intended to ease consumer burdens, critics warned the move could restrict lending and squeeze bank profitability. Financial stocks bore the brunt: Citigroup fell 3%, JPMorgan and Bank of America slipped more than 1%, and Capital One tumbled 7%.

Fed Independence Under Fire

Powell confirmed in a rare video statement that prosecutors were probing his testimony regarding the central bank’s $2.5 billion headquarters renovation. He accused the administration of attempting to pressure monetary policy decisions, vowing not to yield. Analysts noted that while the investigation may not immediately affect interest rates or inflation, it raises long-term concerns about the Fed’s autonomy.

Gold and Silver Shine as Safe Havens

Precious metals rallied sharply as investors sought protection against political interference in monetary policy. Gold futures jumped more than 2%, crossing $4,600 an ounce for the first time, while silver surged to a record $85.55. ETFs tracking miners also hit all-time highs, underscoring the flight to safety.

Walmart Leads Consumer Gains

Retail giant Walmart climbed 3% ahead of its inclusion in the Nasdaq-100 index, boosting consumer stocks broadly. The move is expected to drive demand for its shares as index-tracking funds adjust holdings. Tech names also contributed to the rebound, with Palantir, AMD, and Oracle posting gains.

Global Markets Outpace U.S. Benchmarks

Despite the S&P 500’s record-setting performance, international equities outshone U.S. stocks. The iShares MSCI ACWI ex US ETF rose 0.8%, highlighting stronger momentum abroad.

Wall Street Voices Alarm

Former financial leaders warned that criminal investigations targeting the Fed could undermine confidence in U.S. institutions. One described the move as a “murder-suicide,” suggesting it threatens both the central bank’s independence and the credibility of the Justice Department.

Earnings Season and Inflation Data Loom

Traders now await December’s consumer price index and a wave of corporate earnings reports. With inflation expected to dip below 3% and the economy showing robust growth, many strategists believe short-term optimism will keep markets buoyant—even as long-term risks mount.