Market Turmoil as Federal Reserve Politics Clash with Tech Gains

The S&P 500 hovered near record highs amid AI and Walmart gains, despite political tension over the Federal Reserve's independence. Concerns arose after threats to indict Fed Chair Jerome Powell. Investors remained cautious ahead of earnings season and a proposed interest rate cap impacted credit firms.

The S&P 500 halted near record highs on Monday with gains in artificial intelligence stocks and Walmart, offsetting an early slide triggered by concerns about the Federal Reserve's independence.

Market uncertainty followed after the Trump administration threatened potential legal action against Fed Chair Jerome Powell. The tension arises amid pressure for significant interest rate cuts post-2025.

Walmart's listing shift and AI growth propelled the index, while financial stocks floundered following a proposed 10% credit card interest rate cap by President Trump. Investors brace for upcoming earnings season as the government's influence on economic policy remains a point of contention.