Record Highs: S&P 500 and Dow Soar Amid Legal Tensions

The S&P 500 and Dow reached record highs as technology shares and Walmart drove gains, despite concerns over Federal Reserve Chair Jerome Powell's criminal investigation. Walmart's move to Nasdaq-100 may draw in significant investments, while anticipation builds for the U.S. earnings season amid financial sector pressures.

The S&P 500 and Dow Jones Industrial Average both closed at record highs on Monday, buoyed by gains in technology stocks and Walmart's advancing share price. Investors seemed unperturbed by the U.S. Justice Department's criminal investigation into Federal Reserve Chair Jerome Powell.

Walmart's decision to join the Nasdaq-100 index is set to attract billions in investments from passive funds. The looming congressional testimony by Powell, and former Fed governors rallying in his support, provided market stability even as the Fed grappled with external pressures.

Interest in upcoming U.S. earnings reports remains robust, particularly in the technology sector projected to lead with significant growth. Meanwhile, financial sector stocks faced declines following proposed interest rate caps initiated by President Trump, such as Citigroup and American Express losing over 3% of their value.

(With inputs from agencies.)