The S&P 500 (^GSPC 1.22%) rose 0.15% to 6,976.71, the Nasdaq Composite (^IXIC 1.46%) added 0.26% to 23,733.90, and the Dow Jones Industrial Average (^DJI 1.24%) gained 0.17% to 49,590.19 as markets rebounded from an early DOJ‑Fed shock.
Market movers
Alphabet (GOOGL 1.63%) (GOOG 1.54%) climbed as its valuation hit $4 trillion, helping stabilize mega‑cap tech despite policy jitters. In contrast, JPMorgan Chase (JPM 2.27%), Goldman Sachs (GS 4.14%), and American Express (AXP 1.19%) lagged as credit‑card and big‑bank names absorbed Fed and regulatory headline risk.
What this means for investors
The market opened down nearly 1% after the DOJ opened a criminal investigation into Fed chair Jerome Powell, and President Trump called for a "10% cap" on credit card interest rates. Many financial stocks were down on the volatile news -- particularly the credit card companies themselves. However, this volatility played a significant role in sending gold nearly 2% higher, as it continued its incredible rally -- now up 73% over the last year.
Ultimately, it was Alphabet that stole the show after reaching a $4 trillion market capitalization and firmly establishing itself as the second-largest company in the world. Over the weekend, Alphabet:
- partnered with Walmart, Wayfair, and Shopify to enable AI-powered shopping through its Gemini AI platform
- partnered with Walmart to greatly expand its drone deliveries via Alphabet's Wing subsidiary
- was picked by Apple to power the next version of Siri, using its Gemini AI models
All in all, it was a positive day for the market, particularly for investors optimistic about the AI industry and its expanding list of potential use cases.
