The S&P 500 index hits a new record close.
The Nasdaq Composite Index records its highest daily close in two months.
Watch for US inflation data on Tuesday
Major U.S. indexes closed with collective gains on Monday, supported by rising shares of technology companies and retail giant Walmart, while investors largely ignored concerns about the Justice Department's criminal investigation into Federal Reserve Chairman Jerome Powell.
Stocks opened lower following news concerning Powell. The Justice Department's threat to indict him, allegedly based on statements Powell made to Congress regarding a building renovation project, has heightened concerns about the Federal Reserve's independence.
Powell described the move as a pretext to increase his leverage over interest rates, which President Donald Trump has been pushing to cut sharply since taking office in January 2025.
Performance of major US stock market indices:
The Dow Jones index rose 0.2%, or about 86 points, on Monday, marking its third consecutive daily gain and a new record closing high.
The S&P 500 index rose 0.16%, achieving a new record closing.
The Nasdaq Composite Index also rose 0.3% to close at its highest level in more than two months.
Wall Street’s fear index pared its gains to 4% at the close after surging 15% to its highest level in three weeks in early trading.
Investors are looking ahead to the fourth-quarter earnings season in the United States, which unofficially begins on Tuesday with the release of results from JPMorgan and other major banks.
Investors are also awaiting Tuesday's Consumer Price Index report, which could influence expectations of an interest rate cut by the Federal Reserve.
(LSEG) data indicates that markets currently expect at least two more quarter-point reductions before the end of the year.
Walmart stock:
Walmart shares rose 3% on Monday to close at an all-time high, adding $27 billion to the company's market value in a single day.
These gains came after Nasdaq announced that the retail giant's stock would join the Nasdaq 100 index as of January 20, a move that could attract billions of dollars from passive index funds.
The company had moved its stock listing last month from the New York Stock Exchange.
Financial sector stocks:
Shares of lending and credit card companies on Wall Street came under selling pressure on Monday after Trump called for a one-year cap on credit card interest rates at 10% starting January 20.
Citigroup shares fell 3%, suffering their biggest daily loss in three months, while shares of credit card company American Express, as well as consumer finance companies, including Capital One, also declined.
