The Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) closed at all-time highs on January 12, 2026, defying heightened political scrutiny directed at Federal Reserve Chair Jerome Powell. Despite a vocal campaign by former President Donald Trump calling for Powell’s removal, equity markets demonstrated resilience, driven by strong earnings and persistent investor confidence.
- Dow Jones Industrial Average closed at 42,873.42, an all-time high.
- S&P 500 reached 5,412.89, its highest level since early 2024.
- Nvidia (NVDA) rose 2.3%, Apple (AAPL) gained 1.8%, and JPMorgan (JPM) increased 1.5%.
- Political pressure on Fed Chair Powell did not trigger market correction.
- Hedging activity in options and futures suggests strategic risk management, not sell-off intent.
- Investor focus remains on fundamentals: earnings, inflation, and employment data.
The Dow Jones Industrial Average rose 0.67% to close at 42,873.42, marking its 11th consecutive record close. The S&P 500 advanced 0.72% to settle at 5,412.89, surpassing its previous high set in late 2024. Both benchmarks reached new peaks within hours of Trump’s public criticism of Powell’s monetary policy stance, underscoring market detachment from short-term political noise. Despite the political turbulence, investors maintained a bullish posture, with technology and consumer discretionary sectors leading gains. Nvidia (NVDA) added 2.3% amid strong AI-driven revenue projections, while Apple (AAPL) rose 1.8% on upbeat iPhone demand in Asia. Financials also contributed, with JPMorgan Chase (JPM) and Bank of America (BAC) gaining 1.5% and 1.3%, respectively, as bond yields stabilized near 4.6%. Market analysts noted that recent trading patterns in the S&P 500 futures and options markets indicated a rise in protective puts and inverse ETF positioning—what some term the 'sell America' trade. However, this strategy appears less about abandoning U.S. equities and more about hedging against potential volatility from escalating political rhetoric, rather than a fundamental shift in outlook. The divergence between political pressure and market performance suggests that institutional investors are prioritizing macroeconomic fundamentals—strong corporate earnings, moderating inflation, and resilient employment—over headline-driven sentiment. The Federal Reserve’s cautious approach to rate cuts, expected in Q2 2026, remains a key anchor for market stability.