12.01.202618:08:34UTC+00US Stocks Erase Losses

On Monday, U.S. stock indices recovered earlier losses to close mostly higher as investors evaluated a cautiously optimistic macroeconomic outlook amidst renewed criticisms from the Trump administration towards the Federal Reserve. Both the S&P 500 and the Nasdaq 100 posted gains, while the Dow Jones Industrial Average recovered from a 400-point decline to nearly even out. Notably, the Department of Justice has issued a subpoena to Federal Reserve Chairman Powell on criminal allegations related to the restoration of Fed buildings. Powell suggests the charges aim to remove him due to the Federal Open Market Committee's recent monetary policy decisions. Despite these developments, the expectation of continued strong growth and potential rate cuts by the central bank supported a favorable earnings outlook, boosting shares in the technology and consumer staples sectors. Advanced Micro Devices (AMD), Oracle, and Walmart each rose by over 3%. Conversely, financial services stocks took a hit following President Trump's proposal to cap credit card interest rates at 10% for one year, with JPMorgan, Visa, and Mastercard each declining by nearly 3%.