Stock Market Today, Jan. 12: Markets Dip on DOJ Powell Probe, Rebound With Alphabet

The S&P 500 (^GSPC +0.16%) rose 0.15% to 6,976.71, the Nasdaq Composite (^IXIC +0.26%) added 0.26% to 23,733.90, and the Dow Jones Industrial Average (^DJI +0.17%) gained 0.17% to 49,590.19 as markets rebounded from an early DOJ‑Fed shock.

Market movers

Alphabet (GOOGL +1.04%) (GOOG +1.09%) climbed as its valuation hit $4 trillion, helping stabilize mega‑cap tech despite policy jitters. In contrast, JPMorgan Chase (JPM 1.52%), Goldman Sachs (GS +1.13%), and American Express (AXP 4.26%) lagged as credit‑card and big‑bank names absorbed Fed and regulatory headline risk.

What this means for investors

The market opened down nearly 1% after the DOJ opened a criminal investigation into Fed chair Jerome Powell, and President Trump called for a “10% cap” on credit card interest rates. Many financial stocks were down on the volatile news — particularly the credit card companies themselves. However, this volatility played a significant role in sending gold nearly 2% higher, as it continued its incredible rally — now up 73% over the last year.

Ultimately, it was Alphabet that stole the show after reaching a $4 trillion market capitalization and firmly establishing itself as the second-largest company in the world. Over the weekend, Alphabet:

• partnered with Walmart, Wayfair, and Shopify to enable AI-powered shopping through its Gemini AI platform
• partnered with Walmart to greatly expand its drone deliveries via Alphabet’s Wing subsidiary
• was picked by Apple to power the next version of Siri, using its Gemini AI models

All in all, it was a positive day for the market, particularly for investors optimistic about the AI industry and its expanding list of potential use cases.