Wall Street Rides High While Powell Under Investigation

The S&P 500 and Dow reached record highs despite the U.S. Justice Department probing Federal Reserve Chair Jerome Powell. Technology and Walmart shares surged, adding to gains. Investors brushed off news about Powell, focusing instead on upcoming earnings reports and potential interest rate cuts.

The stock market showed resilience as the S&P 500 and Dow ended at record highs on Monday. Gains were led by technology stocks and retailer Walmart, as investors largely dismissed the Justice Department's investigation of Federal Reserve Chair Jerome Powell.

Despite early concerns over Powell's probe, attributed to his congressional remarks on a renovation project, stocks rebounded. Walmart's impending addition to the Nasdaq-100 index also helped buoy the market, promising potential inflows from passive index funds.

Investors turned their attention to the upcoming U.S. earnings season, seeking insights into financial trends. Challenges remain, as financials slumped following President Trump's proposed credit card interest rate cap. Markets now anticipate further Fed rate cuts within the year.

(With inputs from agencies.)