The S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.2%) notched modest gains today as stocks mounted a broad reversal from early losses. Today's gains culminated in fresh record highs for the S&P 500, while the DJIA notched a record close. 

The stock market opened to relatively broad losses this morning as investors navigated a handful of negative news items. Most notably, Fed Chair Jerome Powell confirmed that he is the subject of a Department of Justice criminal probe tied to his testimony before the Senate Banking Committee concerning renovations to Fed headquarters. The headline raised concerns about the Federal Reserve's political independence, although the market has grown familiar with this narrative in recent years.

While the broader market saw the development as an excuse to take some profits following Friday's record highs, the market quickly began to regain its footing, and by midday, the major averages were mostly higher. 

The financials sector (-0.8%) was one of very few S&P 500 sectors that remained firmly lower, facing additional pressure from a separate premarket development. President Trump's call to cap credit card interest rates at 10% caused a sharp drop in many credit card and banking names. Synchrony Financial (SYF 79.63, -7.26, -8.36%) and Capital One (COF 233.20, -16.00, -6.42%) were the worst-performing S&P 500 names today, while American Express (AXP 359.59, -16.02, -4.27%) and Citigroup (C 117.70, -3.62, -2.98%) also faced notable retreats. 

JPMorgan Chase (JPM 324.49, -4.70, -1.43%) also traded lower ahead of its earnings release tomorrow, the first of a busy week for major banking names. 

The energy sector (-0.7%) was the only other laggard today despite crude oil futures settling today's session $0.45 higher (+0.8%) at $59.55 per barrel. Exxon Mobil (XOM 123.98, -0.62, -0.50%) CEO Darren Woods said that Venezuela is "uninvestable" in its current state, a comment that drew the ire of President Trump, prompting him to say he might keep Exxon out of the country himself.

Meanwhile, the nine other S&P 500 sectors finished at or above their baselines. 

Though the information technology sector (+0.4%) finished with only about half of its gain from session highs, its steady rise from an opening loss was pivotal in lifting the major averages decidedly above their baselines.

Memory storage names Western Digital (WDC 212.18, +11.72, +5.85%) and Seagate Tech (STX 321.48, +17.47, +5.75%) posted another day of impressive gains, leaving the two stocks up 23.1% and 16.7% for the year, respectively. 

The PHLX Semiconductor Index (+0.5%) advanced nicely, though NVIDIA (NVDA 184.89, +0.03, +0.02%) once again ceded a solid intraday gain.

Elsewhere, the consumer staples sector (+1.4%) captured the widest gain, a lead that it held from early in the session.  Walmart (WMT 117.97, +3.44, +3.00%) provided solid leadership after news that it will join the Nasdaq 100 Index, with Costco (COST 943.08, +18.20, +1.97%) also trading higher. 

Dollar General (DG 148.86, +6.12, +4.29%) and Dollar Tree (DLTR 137.24, +4.86, +3.67%) both rebounded from Friday's pullback, which followed investor disappointment after the Supreme Court declined to issue a ruling on the legality of President Trump's IEEPA tariffs. 

The materials sector (+0.7%) was another top mover as concerns around Fed independence drove gold to fresh record highs, with the metal settling today's session $114.30 higher (+2.5%) at $4,615.30 per troy ounce. As is often the case when precious metals rally, Freeport-McMoRan (FCX 58.70, +2.17, +3.84%) and Newmont Corporation (NEM 112.92, +3.93, +3.61%) posted solid gains. 

Elsewhere, the industrial sector (+0.8%) rounds out the top three movers today with strong showings from defense names sending the iShares Aerospace and Defense ETF 1.5% higher amid continued geopolitical uncertainty.  The Wall Street Journal reported that President Trump is considering an Iranian offer for diplomacy, but he is leaning towards approving new military strikes on the country and will meet with advisors tomorrow. 

Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.2%) added to their year-to-date gains that see them outperform the major averages early in the year. 

Though today's gains across the major averages were modest, the reversal from opening lows reflects resilience in a market that continues to chart record highs in broad fashion. Stocks were able to shake the early weakness tied to concerns of Fed independence and put together another winning session. Attention now turns to tomorrow's 8:30 a.m. ET release of the December CPI (Briefing.com consensus 0.3%) and Core CPI (Briefing.com consensus 0.3%) readings, which will be a key near-term catalyst for markets. A hotter print could push rate-cut expectations further out from their current several-month horizon, while a softer reading would likely support the market's push to new highs.

U.S. Treasuries began the week with losses across the curve, but an intraday resilient showing helped the complex finish above morning lows. The U.S. Treasury sold $58 billion in 3-year notes and $39 billion in 10-year notes, both of which were met with good demand. The 2-year note yield settled up one basis point to 3.55%, and the 10-year note yield settled up two basis points to 4.19%. 

There was no economic data of note today. 

• Russell 2000: +6.2% YTD
• S&P Mid Cap 400: +4.9% YTD
• DJIA: +3.2% YTD
• Nasdaq Composite: +2.1% YTD
• S&P 500: +1.9% YTD