Wall Street’s three main stock indexes ended slightly higher. Concerns about Federal Reserve independence grew after the Donald Trump administration launched an investigation into Federal Reserve Chair Jerome Powell.

On Jan. 12, the Dow Jones Industrial Average rose 86.13 points, or 0.17 percent, to close at 49,590.20 on the New York Stock Exchange.

The S&P 500 gained 10.99 points, or 0.16 percent, to 6,977.27. The Nasdaq Composite added 62.56 points, or 0.26 percent, to 23,733.90. The S&P 500 and the Dow set record closing highs, helped by strong bargain hunting.

Stocks reacted sensitively after the Trump administration began an investigation into Powell that could lead to criminal charges. The allegations involve poor oversight of a renovation and remodeling project at the Fed headquarters building and perjury before Congress.

In a video released the previous day, Powell said, "In connection with my congressional testimony in June last year about the renovation of the Fed building, I received a grand jury subpoena and threats of criminal prosecution from the Justice Department on Jan. 9." He added, "This unprecedented action must be seen in the context of threats and sustained pressure from the administration."

He also said, "This new threat has nothing to do with my testimony in June last year or the building renovation." He said, "These are all pretexts, and the threat of criminal complaint is the result of the Fed setting interest rates based on its own judgment about what would best serve the public interest, rather than following the president’s preferences."

Trump said of the investigation into Powell, "I know nothing about it." White House spokesperson Karoline Leavitt also said, "President Trump did not order the investigation."

Still, some reactions said it was hard to see it as having happened without Trump’s direction, given that Trump has repeatedly used the word "stupid" to refer to Powell and has pressured him by saying he cut the benchmark rate too late.

Markets, however, responded with bargain buying amid caution as it did not appear Powell would step down immediately because of the investigation. Former Fed chairs and some former Treasury secretaries also issued statements supporting Powell and condemning Trump, lending Powell support.

Alphabet rose 1 percent on the day, topping a $4 trillion market value at the close for the first time in the company’s history. It was the fourth company globally to do so.

Alphabet first exceeded $3 trillion in market value on Sept. 16 last year and then surpassed $4 trillion in just four months. Its valuation has risen quickly as its generative AI, Gemini, has been well received and is rapidly closing the gap with ChatGPT.

Among mega-cap technology companies with market values of $1 trillion or more, Microsoft, Meta and Amazon fell about 1 percent. Broadcom, along with Alphabet, rose 2.1 percent.

The market’s focus is now on the December consumer price index, due to be released on Tuesday. Investors are also watching the start of earnings season alongside results announcements by major big banks.

With the 2026 outlook that banks provide seen as a key variable, the health of consumer lending is expected to be the top focus, including loan loss provisions and credit card repayment trends.