US close: Dow, S&P 500 eke out new highs despite Trump-Powell tensions

12th Jan 2026 22:04

(Sharecast News) - US stocks erased earlier losses to push into positive territory by the close, sending the Dow and S&P 500 to new all-time highs, though markets traded within a narrow range amid heightened policy risk at home and rising geopolitical tensions overseas.

The Dow and S&P 500 both rose just 0.2% to new record closes of 49,590.20 and 6,977.27, respectively, topping earlier highs set on Friday.

Meanwhile, the Nasdaq gained 0.3% to 23,733.90, its highest since 3 November and within a whisker of the record close of 23,958.47 reached on 29 October.

Market sentiment was focused on the long-running row between Donald Trump and Jerome Powell, which escalated on Sunday after the Federal Reserve chair said the Department of Justice had launched a criminal investigation into the $2.5bn renovation of the Fed's headquarters, and into his testimony about the project to the Senate banking committee in June last year.

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation," Powell said in a video message.

Despite the small gain in equities, a rise in demand for safe-haven assets - along with a weaker dollar - sent gold and silver prices to new heights. Gold jumped 2.2% to $4,600.40 an ounce, while silver rocketed 6.9% to $84.79 an ounce.

"Gold was once again tempting investors with its safe haven potential as the world tries to work out what the American president might decide to do next, either at home or further afield," said AJ Bell's head of financial analysis Danni Hewson.

"The prospect of the US central bank having its independence undermined is hugely disturbing, but there's so much other noise it's hard for investors to really focus on any one thing. This is perhaps why we've not seen huge movements today."

Also weighing on sentiment was the rising conflict in Iran, amid speculation that Trump was considering military action against the country. Widespread protests were met with a violent crackdown by the Iranian authorities, leaving almost 500 people dead, according to human rights groups.

Abivax up on Eli Lilly reports

Shares in Nasdaq-listed Abivax were up 3% after reports emerged that pharma giant Eli Lilly was preparing a $17.5bn bid for the Paris-based biotech firm. According to French publication La Lettre, Indiana-based Eli Lilly is considering making a €15bn offer for the company, though is waiting to see whether French regulators would raised any issues with foreign investment.

Shares in Amex and Visa were in the red after Trump called for a one-year 10% cap on credit card interest rates, claiming the move could save Americans tens of billions of dollars. Trump pledged to "no longer let the American public be 'ripped off' by credit card companies".

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said that essentially halving the current average interest rate would upend the basic economics of the industry, forcing lenders to rethink how they manage risk and who they're willing to lend to. "Most banks would respond by cutting credit limits, closing riskier accounts, and scaling back rewards programmes, because they simply couldn't cover losses at that price point," he said.

Upmarket athleisure brand Lululemon was trading higher after the company said that fourth-quarter results would be at the upper end of guidance due to a strong festive selling season.

UnitedHealth fell after a Senate committee looking into the health insurer's practices alleged that it used aggressive tactics such as adding diagnoses to patient records to collect extra federal payments. The probe found UH "turned risk adjustment into a business, which was not the original intent."

Dow Jones - Risers

International Business Machines Corporation (CDI) (IBM) $312.18 2.62%

Johnson & Johnson (JNJ) $209.72 2.61%

Boeing Co. (BA) $239.77 2.25%

Caterpillar Inc. (CAT) $629.73 1.97%

3M Co. (MMM) $168.00 1.63%

Goldman Sachs Group Inc. (GS) $949.55 1.13%

Procter & Gamble Co. (PG) $143.47 1.12%

Dow Chemical Co. (DOW) $26.51 0.65%

Apple Inc. (AAPL) $260.25 0.34%

Cisco Systems Inc. (CSCO) $74.02 0.19%

Dow Jones - Fallers

American Express Co. (AXP) $359.59 -4.27%

Intel Corp. (INTC) $44.06 -3.27%

Walt Disney Co. (DIS) $112.82 -2.64%

Visa Inc. (V) $343.33 -1.88%

Verizon Communications Inc. (VZ) $39.84 -1.53%

JP Morgan Chase & Co. (JPM) $324.49 -1.43%

Merck & Co. Inc. (MRK) $109.19 -1.21%

Unitedhealth Group Inc. (UNH) $340.56 -1.01%

Travelers Company Inc. (TRV) $280.36 -0.52%

Microsoft Corp. (MSFT) $477.18 -0.44%

S&P 500 - Risers

Western Digital Corp. (WDC) $212.14 5.83%

Seagate Technology Plc (STX) $321.48 5.75%

Albemarle Corp. (ALB) $169.33 4.98%

Dollar General Corp (DG) $148.53 4.29%

Freeport-McMoRan Inc (FCX) $58.71 3.86%

Dollar Tree Inc (DLTR) $137.32 3.73%

Newmont Corporation (NEM) $112.96 3.64%

Akamai Technologies Inc. (AKAM) $91.24 3.53%

Amphenol Corp. (APH) $144.90 3.53%

Darden Restaurants Inc. (DRI) $209.45 3.49%

S&P 500 - Fallers

Bread Financial Holdings, Inc. (BFH) $71.78 -10.68%

Synchrony Financial (SYF) $79.74 -8.36%

Capital One Financial Corp. (COF) $233.24 -6.42%

Macy's Inc. (M) $21.93 -5.35%

Best Buy Co. Inc. (BBY) $67.17 -4.87%

QUALCOMM Inc. (QCOM) $169.27 -4.79%

Baxter International Inc. (BAX) $20.19 -4.37%

Lincoln National Corp. (LNC) $41.88 -4.34%

American Express Co. (AXP) $359.59 -4.27%

Kohls Corp. (KSS) $19.74 -3.89%

Nasdaq 100 - Risers

Baidu Inc. (BIDU) $152.26 6.07%

Western Digital Corp. (WDC) $212.14 5.83%

Seagate Technology Plc (STX) $321.48 5.75%

NetEase Inc. Ads (NTES) $145.79 4.74%

Trip.com Group Limited (TCOM) $78.96 4.36%

JD.com, Inc. (JD) $30.73 4.35%

Dollar Tree Inc (DLTR) $137.32 3.73%

Illumina Inc. (ILMN) $145.55 3.18%

eBay Inc. (EBAY) $93.29 2.62%

Comcast Corp. (CMCSA) $29.06 2.43%

Nasdaq 100 - Fallers

QUALCOMM Inc. (QCOM) $169.27 -4.79%

Sirius XM Holdings Inc (SIRI) $20.96 -3.76%

Regeneron Pharmaceuticals Inc. (REGN) $767.97 -3.59%

Intel Corp. (INTC) $44.06 -3.27%

Microchip Technology Inc. (MCHP) $73.39 -2.43%

Analog Devices Inc. (ADI) $293.86 -2.35%

Intuitive Surgical Inc. (ISRG) $572.84 -2.29%

Qvc Group Inc Series A (QVCGA) $9.29 -2.21%

Skyworks Solutions Inc. (SWKS) $58.85 -2.19%

DENTSPLY Sirona Inc. (XRAY) $12.50 -2.19%