Closing Bell: S&P 500 Hits Record Highs Despite Fed Independence Concerns

Key Points

• All three major indexes finished higher after reversing early losses, led by strength in the Russell 2000.
• DOJ confirmed a criminal probe into Fed Chair Jerome Powell tied to the Fed’s renovation project, with Powell pushing back and framing the investigation as political pressure on monetary policy.
• Apple struck a multiyear deal to use Google’s Gemini AI models.

Markets reversed earlier losses, with all three major stock indexes closing higher on the session. The S&P 500 (SPX) rose 0.16%, while the Nasdaq-100 (NDX) inched up 0.08%. Small-cap stocks outperformed, with the Russell 2000 (RUT) gaining 0.44%. Consumer Staples, Industrials, and Materials led the market higher, while Financials and Energy were the weakest-performing sectors.

DOJ Initiates Criminal Probe Into Fed Chairman Jerome Powell

Jerome Powell has confirmed that he is under a federal criminal investigation related to the $2.5 billion renovation of the Federal Reserve’s Washington, D.C., headquarters. Powell pushed back on the probe, suggesting it is an attempt to intimidate the Federal Reserve into cutting interest rates more aggressively. He rejected claims of perjury or oversight failures, stating that Congress was kept informed and that the renovation is being used as a political pretext.

Apple Makes Deal With Google for AI Models

Apple (AAPL) and Alphabet (GOOGL) have entered into a multiyear agreement that will provide Apple with foundation models based on Google’s Gemini technology. According to reports, Apple believes Google’s models offer the most capable foundation for its push into artificial intelligence. Apple closed up 0.34% on the session, while Alphabet shares reached a new record closing high, gaining 1%.

Market Events for Tomorrow

• 06:00 AM ET: NFIB Small Business Index
• 08:30 AM ET: CPI
• 10:00 AM ET: New Home Sales
• 01:00 PM ET: 30-y Bond Auction

Notable Earnings for Tomorrow

• DAL, JPM

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